TORONTO (miningweekly.com) – TSX- and Amex-listed gold hopeful Banro will sell 43,48-million shares to raise C$100-million, the company announced on Wednesday morning.

The shares have been priced at C$2,30 apiece, which is a discount of around 11,5% to Banro's closing price in Toronto on Tuesday, of C$2,60.

The offering will be conducted by a syndicate coled by GMP Securities and CIBC World Markets, which will be given an overallotment option to buy additional shares equal to 15% of the offering.

Banro intends to use the net proceeds of the offering for advancing its gold projects in the Democratic Republic of Congo, specifically on the Twangiza-Namoya gold belt, and for working capital and general corporate purposes.

Last week, the company announced it had increased the proven and probable reserves at its most advanced asset, the Twangiza project, by 23,7% to 4,54 million ounces of gold.

Banro has optimised a feasibility study completed earlier this year on Twangiza, which is now expected to cost $377,43-million, including a contingency of $35,5-million.

Shares in the company slid 11,15% on Wednesday morning, to C$2,31 apiece by 11:33 in Toronto.

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