Kinross Gold Announces Public Equity Offering, Shares Tumble 10%

Shares of Kinross Gold Corporation KGC fell more than 10 Thursday morning after the company announced a public equity offering.

Kinross stated that it has entered into an agreement with underwriters for a bought deal public equity offering of 83.4 million common shares of its stock at a price of $3.00 per share.

Shares of Kinross closed for trading at $3.18 on Thursday.

Kinross noted that the offering will close on or around March 4, 2016 and will raise approximately $250 million. The company will use the net proceeds to strengthen its balance sheet and improve the long-term liquidity position by using $175 million to repay credit facilities. The remainder of the proceeds will be used to repay debt maturing in 2016 and for general corporate purposes.