Hedge funds slash bullish wagers on gold over Trump election win
The precious metal has fallen about 8% from a record high on Oct. 31, with losses accelerating after Trump’s election victory last week.
i-80 Gold (TSX: IAU) (NYSE: IAUX) fell by over 11% at market open Tuesday following its announcement of a C$100 million ($74m) public offering of units. The units are priced at C$1.65 each, comprising one share and half of a warrant with an exercise price of C$2.15.
The offering was upsized by the company late on Monday due to strong investor demand. The original financing amount was for C$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 C$15 million, taking the potential gross proceeds to C$115 million.
Net proceeds of the offering, as detailed in a news release Monday, will go towards its mineral properties based in Nevada.
i-80, which spun out of Equinox Gold in 2021, currently has four projects in the top gold-producing US 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 and Newmont’s Nevada Gold Mines joint venture.
By 10:15 a.m. ET, i-80 Gold has erased most of its losses, trading at C$1.63 with a market capitalization of C$510 million ($376m).
