Shares of GR Silver Mining, a Canada-based junior mineral exploration company focused on Mexico, experienced a decline in early trading on Wednesday after the company announced its intention to raise CAD 1.2 million ($873,203) through a private placement of units.
Share Price Decline
Shares of GR Silver Mining were trading approximately 13% lower at C$0.04 at 10:02 a.m. ET.
Private Placement Proposal
Late Tuesday, the company revealed its plans to launch a nonbrokered private placement offering up to 30 million units priced at C$0.04 per unit.
Unit Composition and Purchase Warrants
Each unit will consist of one common share and one purchase warrant that can be exercised at a price of C$0.07 within the next three years.
Stock Performance
GR Silver’s stock performance in 2023 has been under pressure, with a decline of nearly 70% year-to-date. On Tuesday, it closed at C$0.04.
Utilization of Funds
The company intends to utilize the funds raised to settle certain debts owed to directors and third-party individuals, as well as for general working capital purposes.
