- Canadian precious metals investor Eric Sprott has acquired a C$1.92 million stake in Max Resource Corp. (MXR) as part of a larger private placement
- The company issued a total of 27,083,333 units at a price of $0.24 each for gross proceeds of $6.5 million
- Eric purchased 8 million of these units, resulting in a 13.7 per cent holding in the company on a partially diluted basis
- The proceeds will be used to fund exploration work at the company’s projects in Colombia and Peru
- Max Resource Corp. (MXR) is currently up 20.69 per cent to 35 cents per share
Canadian precious metals investor Eric Sprott has acquired a C$1.92 million stake in Max Resource Corp. (MXR) as part of a larger private placement.
Under the terms of the offering, the Vancouver-based mining company issued a total of 27,083,333 units at a price of $0.24 each for gross proceeds of $6.5 million.
These units are comprised of one common share in Max Resource Corp. and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to acquire an additional common share at a price of $0.40, exercisable over a period of 12 months from the date of issuance.
However, should the company’s shares trade at or above a price of $0.80 for a period of 10 consecutive trading days, the expiry date of the warrants may be brought forward.
In connection with the placement, Max Resource Corp. paid a finder’s fee to certain parties totalling just over $302,000 and issued an aggregate of 1,242,480 finder’s warrants. These warrants will be exercisable at a price of $0.40 for a period of 12 months.
Eric, who has made an extensive list of major investments in Canadian gold and silver companies this year, acquired 8 million of the units on offer. The investment represents a 9.6 per cent holding in Max Resource Corp., or roughly 13.7 per cent on a partially diluted basis, assuming the exercise of all the warrants.
Max Resource Corp. says the proceeds will be used to fund exploration work at its projects in South America, which include the CESAR copper-silver project in Colombia and the RT gold project in Peru.
Max Resource Corp. (MXR) is currently up 20.69 per cent to 35 cents per share at 11:49am EDT.