FinancingNot sure what the money will be used for but here are my thoughts:
"Bought" deal was done at $3.75, so assuming it was organized any day before yesterday it was actually done at a premium to the stock price, which is a great sign. Secondly, NGD is producing gold (which is up nicely today although the reaction has been offset by the financing) and is generating cash flow.
They have stated that the new mine will generate cash flow to fund development and capex costs for the ither projects. They also have $140M in cash (as of june 30th, 2009). So they aren't short of cash, they have cash flow to fund operations. The financing is likely either to pay down some outstanding debt (i'm not too familiar with the repayment terms or interest on those) OR, to seek acquisitions. The market is offering a lot at the moment because most are still undervalued. They have way too much cash to need an equity offering for anything else.....
I prefer when they explain what the use of the funds will be for. Hey, did anyone listen to the conference call? I have to go listen to it this weekend, but was there any mention of raising funds, or talk about more acquisitions?
SP