Minaurum Gold Inc. (CVE:MGG) (OTCMKTS:MMRGF) stock is moving sharply lower in the opening session on Friday after the company announced bought deal public offering . The stock has fallen about 35% so far this year.

Major Trigger:

Minaurum Gold Announces C$7.0 Million Bought Deal Public Offering

Key Highlights:

• announce that it has entered into an agreement with Red Cloud Securities Inc. (the “Underwriter”) to act as sole underwriter and bookrunner, pursuant to which the Underwriter has agreed to purchase, on a bought deal basis, 17,500,000 units of the Company (the “Units”) at a price of C$0.40 per Unit (the “Unit Price”) for aggregate gross proceeds of C$7,000,000 (the “Offering”).
• Each Unit will be comprised of one common share of the Company (each, a “Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall be exercisable to acquire one Share at a price of C$0.60 at any time on or before the date, which is 24 months after the closing date of the Offering.
• The Company has granted to the Underwriter an option, exercisable for a period of 30 days after and including the closing date of the Offering, to purchase up to 2,625,000 additional Units at the Unit Price to raise additional gross proceeds of up to C$1,050,000 to cover over-allotments, if any, and for market stabilization purposes.
• The Company intends to use the net proceeds raised from the sale of Units for the exploration of the Company’s mineral projects in Mexico and general working capital purposes, as will be further disclosed in the Company’s short form prospectus. The Offering is scheduled to close on or around July 9, 2021 and is subject to the completion of formal documentation and receipt of all regulatory approvals including, but not limited to, the approval of the TSX Venture Exchange (the “TSXV”).

 Market Reactions  

As of 10:10, MGG stock fell by 12% at C$0.40. Total volume so far stood at 1.35 million shares, 18X its average volume of 83K shares.  The stock moved within a range of $0.3800 – 0.4000 after opening at $0.40.