- Canadian investor Eric Sprott has acquired a C$3 million interest in Stroud Resources (SDR) via a private placement of units
- Under the terms of the placement, the company issued a total of 7.5 million units at a price of 40 cents each, all of which were acquired by Eric
- Each unit is comprised of one common share and half of one common share purchase warrant
- The proceeds raised will be used to fund exploration world at Stroud’s properties in Mexico
- Stroud Resources (SDR) is currently down 6.25 per cent and is trading at 45 cents per share
Canadian investor Eric Sprott has acquired a C$3 million interest in Stroud Resources (SDR) via a private placement of units.
Under the terms of the placement, which was announced on July 24, the Toronto-based company issued a total of 7.5 million units at a price of $0.40 each, all of which were purchased by Eric.
These units are comprised of one common share in Stroud Resources and half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire an additional common share at a price of $0.60, exercisable over a period of one year from the date of issuance.
Prior to the completion of the placement, Eric owned 13.3 million common shares in Stroud Resources, as well as 4.44 million warrants. With the offering now complete, Eric owns 20 million common shares and 8.19 million warrants, which represents approximately 55.3 per cent of the company’s issued and outstanding securities on a partially diluted basis.
Stroud Resources intends to use the proceeds to fund exploration work at its Santo Domingo silver-gold project in the Hostotipaquillo region of Jalisco, Mexico, as well as for general working capital purposes.
The property features a series of banded breccia-style epithermal quartz carbonate veins. The two veins nearest the surface, La Rayas and Guadalupe, are up to 35 metres and 10 metres wide, respectively. Both structures exceed 700 metres in strike length and are roughly 300 metres in depth.
According to existing data and recent drilling results, additional sources of high-grade ore are thought to exist in less-explored regions along strike.
Stroud Resources (SDR) is currently down 6.25 per cent and is trading at 45 cents per share at 3:02pm EDT.