By Adriano Marchese
First Mining Gold shares were lower mid-morning Friday after the company said it plans to raise 5 million Canadian dollars ($3.6 million) by way of a nonbrokered private placement.
At 10:44 a.m. ET, shares were down by more than 10% at C$0.13.
The Canadian gold miner said that it intends to issue up to 40 million units of the company at a price of C$0.125 apiece.
Shares have been under pressure in 2023, down 35% year-to-date, and nearly 40% lower over the last 52 weeks, including Friday’s decline.
Each unit will be made up of one common share in the company and one-half of a warrant. Each full warrant will entitle the holder to acquire one common share at a price of C$0.20 a share over the next three years.
First Mining intends to use the money primarily to advance its Springpole and Duparquet gold projects in Ontario and Quebec, respectively.
Write to Adriano Marchese at adriano.marchese@wsj.com
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