Pacgold (ASX:PGO) shares took a steep downward turn, dropping as much as 7.1% to A$0.195, signaling their lowest performance since September 7.

The gold mining firm disclosed firm commitments for a new share placement worth A$3.2 million ($2.06 million).

The detail that raised eyebrows is the issue price of A$0.19 per share, representing a 9.5% discount to the closing price of A$0.21 on September 19.

Prior to this development, the company had its trading halted on September 20 as it prepared to announce the capital raising.

Alarmingly, over 214,683 shares traded hands, more than double the 30-day average volume.

To date, the stock has suffered a 41.7% slide this year, as of its last closing.

Pacgold is a gold mining company struggling against falling stock prices this year.