I-80 Gold stock drops on $100M public offering

I-80 Gold (TSX: IAU; NYSE: IAUX) shares fell by over 11% at market open Tuesday after it announced a $100-million equity financing.

The units are priced at $1.65 each, comprising one share and half a warrant with an exercise price of $2.15.

The company upsized the offering late Monday due to strong investor demand. The original financing amount was for $86 million at the same per-unit price.

The underwriters also have an overallotment option to buy 15% of the base offering for additional proceeds to the company of up to $15 million, taking the potential gross proceeds to $115 million.

The company will use the funds to advance its properties in Nevada.

I-80, which spun out of Equinox Gold (TSX: EQX) in 2021, currently has four projects in the No. 1 gold-producing U.S. state, with a combined 6 million oz. of measured and indicated resources and 8 million oz. of inferred resources. This makes it the second-largest holder of gold resources in central Nevada after Barrick Gold (TSX: ABX; NYSE: GOLD) and Newmont‘s (TSX: NGT; NYSE: NEM) Nevada Gold Mines joint venture.