NEW YORK (TheStreet) -- Shares of Newmont Mining (NEM) were falling 2.6% to $23.78 on heavy trading volume Wednesday after the gold miner priced the 29 million shares of common stock in its underwritten offering.
Newmont Mining said it will sell the 29 million shares of common stock in the offering to Citigroup (C) and JPMorgan (JPM), which are acting as underwriters for the offering, for gross proceeds of about $682 million. The company expects the offering to close on June 15, 2015.
The mining company said it will use the proceeds from the offering, along with other cash from its balance sheet, to fund the acquisition of the Cripple Creek & Victor mine in Colorado from AngloGold Ashanti (AU). Until the acquisition closes the company will put the proceeds in its short-term liquid investments.
About 24.1 million shares of Newmont Mining were traded by 12:37 p.m., well above the company's average trading volume of about 6.7 million shares a day.
TheStreet Ratings team rates NEWMONT MINING CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEWMONT MINING CORP (NEM) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."