Torex Gold Resources Inc. (
TSX: T.TXG,
Stock Forum) saw its shares fall 16% to $1.15 on Wednesday as investors reacted to news of a $125 million bought deal financing that was announced on Tuesday afternoon.
At current levels, Torex has a market cap of $697.5 million, based on 606.5 million shares outstanding. The 52-week range is $2.07 and 85 cents.
Torex said it has arranged a bought deal financing under deal with an underwriting syndicate led by BMO Capital Markets. The financing is comprised of 104.2 million units, priced at $1.20 each.
The underwriters have a 30-day over-allotments option to purchase an additional 15% of the offering.
Net proceeds of the offering will be used to fund the development of the El Limon-Guajes project, which is located on the Morelos Gold Property, about 180 kilometres southwest of Mexico City.