Stock Track | Novagold Resources Plummets 5.05% Intraday After Equity Financing Boosted to $300 Million
Stock Track
Jan 23
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.
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