In light of prevailing market conditions, Victoria Gold Corp. (TSX: V.VIT, Stock Forum) said it is not proceeding with an equity raise to support on-site construction activity at the company’s Eagle Gold project in the Canadian Yukon.
The announcement, which came after the close of trading on Monday, sent Victoria shares tumbling 9% Tuesday to 15.5 cents, leaving the junior with a market cap of $52.7 million, based on 340 million shares outstanding. The 52-week range is 34.5 cents and 15.5 cents.
News that construction is being delayed, comes just days after the company secured key approvals for the project from the Yukon and Federal governments.
However, in a press release the company said it does not believe that the equity raise would be in the best interest of shareholders.
Victoria said it has approximately $35 million in cash, marketable securities and accounts receivable.