Gold miner announces bought deal.
Shares of Vancouver-based Red Back Mining (TSX:T.RBI, Stock Forum) fell 10% to $3.60 Friday after the company announced that it has entered into a $60 million bought deal.
Originally announced as a $40 million bought deal early Friday morning, the company says that in response to strong investor demand, it upsized the bought deal to over $60 million. The company says that a syndicate of underwriters agreed to buy over 17 million common shares from Red Back for sale to the public at $3.50 per share.
The offering is expected to close around December 11.
Red Back says proceeds from the offering will be used to fund capital expansion projects currently underway at the Tasiast mine in Mauritania and the Chirano gold development project in Ghana, as well as for general corporate purposes.
Earlier this week on the Red Back Mining Bullboard, goldtoe commented on gold and the U.S. dollar, saying:
when will the US buck fall totally apart? maybe when the large holders of their debt stop buying and start buying gold.. like china for instance. What does it say for other economies though when the US dollar becomes the go to currency during this financial meltdown.. i would have thought gold would decouple from the dollar but it hasn't done that. Maybe that's in the future? I don't know what will start it but i do think gold will see enormous bull market before all is said and done... and RBI will be very popular[sic].
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