It was not a great time in the markets for the MacDonald Mines Exploration Ltd (OTCMKTS:MCDMF) on Thursday as its stock suffered from a strong selloff. The MacDonald Mines stock declined by as much as 12% yesterday and much of that might have been triggered by a development from September 29.
On that day, the company announced that it was planning to conclude a non-brokered private placement financing of units worth as much as C$4 million. In addition to that, the company is also going to make ‘flow through’ units available.
MacDonald Mines announced that it was going to offer a minimum of 25000000 units for C$0.04 each and raise a gross amount of C$1 million. In addition, the company also noted that it was also going to offer up a maximum of 50,000,000 units by way of which it could raise as much as $2 million.
It goes without saying that it could be a significant operation for the company and the potential capital infusion could in fact come as a major boost for the company as well. However, it seems that investors are not particularly excited about the whole venture yet. It remains to be seen if the stock could make a recover in the coming days.