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Start-up issues ground Red Eagle

Unexpected mining conditions at the San Ramon gold mine in Antioquia, Colombia, have prevented Red Eagle Mining (CN:R) from producing as planned, forcing the company to change its mining method and announce a C$46 million (US$34.8 million) rights offering to fund the strategy shift.

Start-up issues ground Red Eagle Start-up issues ground Red Eagle Start-up issues ground Red Eagle Start-up issues ground Red Eagle Start-up issues ground Red Eagle

Red Eagle's San Ramon mine has hit a few snags

The market reacted negatively to the news and sold down the stock to C$0.29, from the previous close of C$0.40. Thereafter, the share price recovered slightly.