After Rise Gold Corp (OTCMKTS:RYES) made a major new announcement yesterday with regard to fresh financing, the market did not react kindly and the stock promptly suffered from a selloff to end the day with a decline of as much as 7%.
Rise Gold Announces US$1,600,000 Financing
The company announced yesterday that it was looking to raise fresh financing to the tune of as much as $1,600,000 by way of the issuance of 4,000,000 units. The units are going to be priced at $0.40 each and would be made up of one share of the Rise Gold common stock and half of a share purchase warrant.
A solitary warrant is going to entitle the holder to pick up one common share in Rise Gold at the exercise price of $0.60 up until two years from the date of issue. The whole thing is going to be conducted by way of a private placement.
On the other hand, Rise Gold also announced that the proceeds from the private placement are going to be deployed towards its Idaho-Maryland Mine project and also for general working capital purposes. Although the stock declined yesterday, it remains to be seen if it can bounce back today.
 Stock On Radar After Announcing US$1,600,000 Financing){kind=link}