African miner Banro Corp. caught a favourable wind on Wednesday, as the junior gold play rolled out a relatively large $125-million stock sale ahead of a rally in bullion.
Banro is developing four projects in the Democratic Republic of the Congo and has a market capitalization of just $245-million. Late Tuesday, the company launched an financing, marketing new shares overnight and setting the price of the offering prior to the start of North American trading on Wednesday.
Underwriters GMP Securities and CIBC World Markets worked the phones as the price of gold took off - it is currently testing new highs at $1,244 an ounce.
Banro ended up selling stock at $2.05 a share - a 6 per cent discount to Tuesday's close at $2.19 - and the stock rallied on Wednesday. Banro is the latest in a series of junior resource plays to raise money.