With the equity markets in free fall, the Paynes Find Gold (ASX: PNE) decision to cancel the non-renounceable rights could be a sign of the times.
The volatility in the market has meant that some capital raising initiatives through the issue of shares become mispriced at the re-rating of a share price.
Paynes Find has not yet indicated if the rights issue will be offered at a later date when stability to the market returns.
The company did however complete a $1.2 million capital raising in the June quarter which helped to fund stage one drilling at the Paynes Find Gold Project, which is located between Geraldton and Kalgoorlie in Western Australia.
Exploration at the project during the quarter included reverse circulation drilling of 69 holes for 3800 metres, with the majority of holes intersecting gold mineralisation.
Significant intersections included the bonanza 2 metres at 50.5g/t from 22 metres, 2 metres at 19.0g/t from 39 metres, and 3 metres at 16.0g/t from 32 metres.