June 10, 2015 / 5:31 PM / 3 years ago

BUZZ-Newmont Mining Corp: Down in heavy volume after capital raise

** Gold producer’s shares down 2.5 pct after co raises capital to fund its acquisition from AngloGold Ashanti Ltd

** Shares among the most heavily traded on the NYSE with more than 4x daily average changing hands by midday

** NEM extends underperformance vs sector this week as peers rally on a softening US dollar and Grexit jitters nudge gold prices closer to the $1,200 level

** Weakness makes further dent into gains stock has made this year. NEM, till last month, had been one of year’s top S&P 500 Index performers, up 46 pct, peak close on May 15

** Co sells 29 mln shares to underwriters, raises $682 mln gross to pay for Cripple Creek & Victor (CC&V) mine in Colorado

** Newmont to also use cash on hand to pay for mine

** Sources tell Reuters Citi and JPM price shares at $23.50, a 3.7 pct discount to Tuesday’s last sale and overall 9 pct discount prior to deal launch

** Spot gold up 0.9 pct at $1,186.61 by midday

** Philadelphia SE Gold/Silver Index top risers IAMGold Corp, Freeport-McMoran Inc, Coeur Mining Inc, Primero Mining Corp, New Gold Inc up 2.8 pct to 3.6 pct

** Shares of AngloGold up fractionally today, have risen 11 pct since CC&V sale was announced (RM: lance.tupper.thomsonreuters.com@reuters.net)

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