Novagold Resources' stock plummeted 5.05% during intraday trading on Friday, reflecting a sharp decline in investor sentiment.

The drop follows the company's announcement that it has increased its equity financing to $300 million from a previously announced $200 million offering. The financing involves the issuance of 30 million shares at $10.00 each, with the net proceeds intended for expenditures related to its Donlin Gold project in Alaska, settling a prepayment option with Barrick Mining, and general corporate purposes.

Such equity offerings often lead to concerns about shareholder dilution, which can pressure the stock price in the short term.