Carpathian Gold Shares Fall as Brazilian Project Halted

Carpathian Gold Inc. has suspended construction of a Brazilian project over environmental concerns and, as a result of the suspension, amended a recent stock offering.

The Toronto-based company said that Brazil's Council for Environmental Policy, or COPAM, advised it to not start any installation work on the RDM Gold project, which is in Minas Gerais State, until further review of certain technical documents.

Carpathian Gold called the agency's decision unexpected and unusual.

The company announced earlier this month a bought deal equity offering of 80 million common shares at a price of 50 cents per common share underwritten by a syndicate.

In light of the above development, the corporation and the underwriters have agreed to amend the terms of the 'bought deal' to provide for an offering of 100 million subscription receipts at a price of 50 cents per share, the company said in a statement.

The nominal value of the share offering remains $40 million.

Shares fell 18.18 percent in morning trading.