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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (35748)	10/22/2009 3:16:24 PM
From: Madharry	Read Replies (2) \| Respond to of 78751

To sell 17.5 mln shares at C$14.25 apiece * To use net proceeds for the Detour Lake gold project * Offering priced at a discount of 2.8 pct Oct 22 (Reuters) - Canadian gold explorer Detour Gold Corp (DGC.TO) said it would raise about C$250 million ($239.5 million) through a bought deal financing to advance its Detour Lake gold project. Detour Gold said a syndicate of underwriters led by RBC Capital Markets will buy 17.5 million shares for C$14.25 per share, a 2.8 percent discount to Detour Gold's Wednesday closing price. The underwriters will have an option to increase the size of the offering by up to an additional 1.8 million shares, for gross proceeds of up to C$25 million. Detour Gold shares, which have gained more than 15 percent in the past month, closed at C$14.67 Wednesday on the Toronto Stock Exchange. ($1=1.044 Canadian Dollar) (Reporting by Krishna Chaithanya in Bangalore; Editing by Ratul Ray Chaudhuri) (Not sure why the stock has now dropped below $14 can. Seems like a positive that they were able to raise so much cash and didnt have to offer any warrants to make it happen as is normally the case for development companies. This continues to be a very oversized position for me. So I will not be adding but I do think that this decline will be a temporary one, as I think it means that there is institutional buying here at $14.25 can. and the underwriters will of course be happy to see the price closer well over that so they can exercise their option and make some more moolah.) I sold off my junk to raise some cash and buy some things if they get cheap enough. on a different topic, it seem strange to me that anyone is buying the newly public reits. I will look at them if and when they sell at a serious discount to nav.