11:53 AM EDT, 03/20/2024 (MT Newswires) -- Calibre Mining Corp. ( CXBMF ) declined 8% on Wednesday.

The Vancouver-based mining company announced a $100 Million bought deal financing after market close on Tuesday.

"We believe this financing should not come as significant surprise given the significant capital required for the ongoing construction of Valentine, which is expected to come on-line in H1/25," TD Securities analyst Steven Green said in a note to clients.

"We believe additional funds were required to continue drawing on the Sprott debt facility," Green said in a note to clients. "As we understand it, the restricted cash cannot be accessed without Calibre being fully funded to build Valentine."

"Capital cost overruns continue to be a risk on new projects," the analyst said.

Green maintained a Buy rating and $2.50 price target on Calibre shares.

The stock declined $0.145, or 8%, to $1.66 on the Toronto Stock Exchange.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 1.67, Change: -0.14, Percent Change: -8.01