Shares of Vista Gold Inc. fell Friday after the company announced the pricing of a public offering.
THE SPARK: Vista announced earlier in the day that it priced a public offering of approximately 3.6 million units at $2.75 per unit.
Each of the units is comprised of one common share of the company and one-half of a common share purchase warrant. Each whole warrant can be used to purchase one share at $3.30 per share over a period of two years. It also granted authority to purchase up to 500,000 additional unites for over-allotments.
Vista's stock had closed Thursday at $2.88.
Vista expects that the offering will yield proceeds, before expenses, of $10 million that it will use for development of gold projects and general corporate purposes.
THE BIG PICTURE: Vista, based in Littleton, Colo., is developing a gold project in Australia and exploring a gold and silver project in Mexico. Its other holdings include a gold project in Indonesia and another in California.
SHARE ACTION: Shares of Vista were briefly halted and then fell 9 percent to close the day at $2.62. Its shares have fallen 34 percent since Sept. 21 when they hit a 52-week peak at $3.99.