- Canadian billionaire Robert Friedland has completed his purchase of a C$2 million stake in Brixton Metals (BBB) as part of a private placement
- The company issued just over 8.5 million units to Newstar Advantage, which is controlled by Robert, at a price of 23.5 cents each
- These units are comprised of one common share and one share purchase warrant, exercisable at a price of 35 cents for a period of 36 months
- The proceeds will be used to eliminate half of the existing three per cent royalty on the Hog Heaven Project currently held by Pan American Silver
- Brixton Metals (BBB) is currently down 4.62 per cent to 31 cents per share
Canadian billionaire Robert Friedland has completed his purchase of a C$2 million stake in Brixton Metals (BBB) as part of a private placement.
Under the terms of the placement, which was announced on October 27, the company issued a total of just over 8.5 million units to Newstar Advantage, an entity controlled by Robert, at a price of 23.5 cents each.
These units are comprised of one common share in Brixton Metals and one common share purchase warrant, exercisable at a price of 35 cents for a period of 36 months from the date of issuance.
The proceeds will be used to eliminate half – or 1.5 per cent – of the existing 3 per cent royalty on Brixton’s Hog Heaven Project, which is currently held by Pan American Silver.
The financing was announced in conjunction with an earn-in and joint venture agreement between Brixton and High Power Exploration (HPX), a privately-owned mineral exploration and development company also led by Robert.
Under the terms of the deal, HPX has the option to earn an initial 51 per cent interest in the Hog Heaven Project by paying $5.92 million in cash to Brixton and assuming $19.73 million in exploration expenses.
HPX may then acquire a further 24 per cent stake by incurring an additional $32.88 million in exploration expenses.
Gary Thompson, Chairman and CEO of Brixton Metals, said he is delighted to have secured the support of Robert as a shareholder in the company.
“We looking forward to working with the HPX team as we accelerate the advancement of the Hog Heaven Project,” he added.
Brixton Metals (BBB) is currently down 4.62 per cent to 31 cents per share at 10:05am EST.