Fire River Gold Corp (CVE:FAU) (PINK:FVGCF) stock price hit a new multiyear low after the company announced intentions to do a new funding round.
FAU stock price tanked 23.3% on Monday carrying a trading volume of 1.6 million which is significantly above the 90 day average of 301 thousand. It was one of the heaviest daily trading volumes detected over the past year and since the price fell below all the recent support zones this action might very well attract many more bearish players over the coming session.
The stock price collapsed after the latest corporate news came out. Fire River announced on June 11 the company will be selling up to 34.78 million units hoping to raise up to $4 million. Each unit consists of one common share and one share purchase warrant exercisable over a two year period at a price of 16 cents per share.
The millions to be received through this offering will be used to kick start the initial phase of the carbon-in-leach circuit at the Nixon Fork gold mill. This is expected to have a significant impact on end production of gold, increasing it from 67% to 95%. Carbon-in-leach would be the third recovery process used in the mill after gravity and flotation.