TORONTO (miningweekly.com) – Gold hopeful Moto Goldmines has entered into an agreement with a syndicate of underwriters led by GMP Securities and BMO Capital Markets, which has agreed to buy 17,86-million shares of the company, for about C$50-million, the firm announced on Friday.

The underwriters will buy the shares for C$2,80 apiece – a discount of about 9% to Moto's closing price on Thursday - on a bought-deal basis, for sale to the public.

Moto has also given the syndicate an option to buy another 2,79-million shares, which would bring the total funds raised to around C$57,5-million.

The company plans to use the money to develop its Moto gold project, in the Democratic Republic of Congo, and for general corporate purposes.

The offering is scheduled to close on or about April 27, 2009, Moto said.

Shares in the company tumbled 9,4% on Friday, to C$2,80 apiece by 15:53 in Toronto.

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