- Precious metals billionaire Eric Sprott is investing C$5 million into Blackrock Gold (BRC) as part of a $7.5 million private placement
- Under the terms of the financing, the company intends to issue 10,416,667 units at a price of 72 cents each
- These units will be comprised of one common share in the company and half of one common share purchase warrant
- The proceeds will be used to fund an expanded exploration program at the Tonopah West property in Nevada, USA
- Blackrock Gold (BRC) is currently up 12.22 per cent and is trading at $1.01 per share
Precious metals billionaire Eric Sprott is investing C$5 million into Blackrock Gold (BRC) as part of a $7.5 million private placement.
Under the terms of the financing, the Vancouver-based gold explorer intends to issue 10.41 million units at a price of 72 cents each. These units will be comprised of one common share in Blackrock Gold 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 $1.00, exercisable over a period of two years from the date of issuance.
So far, Eric – who has executed a long run of gold and silver investments over the last few months – has agreed to purchase roughly 6.9 million units under the offering.
The proceeds raised will be used to fund an expanded exploration program at Blackrock Gold’s Tonopah West property in Nevada, which consists of 98 patented and 17 unpatented claims located in the Esmeralda and Nye Counties.
A number of different companies undertook exploration activities at the Tonopah West property in the 1980s and 1990s, the most prominent being Eastfield Resources.
In 1997, Eastfield drilled an exploration hole on the southwest portion of the property, intersecting 7.5 grams per tonne of gold and 288 grams per tonne of silver over 3 metres.
Then, in 2018, Coeur Mining undertook their own drill program, cutting two 1.5-metre zones grading 9.7 grams per tonne gold with 715 grams per tonne of silver, and 4.6 grams per tonne of gold with 401 grams per tonne of silver.
Earlier this week, Blackrock Gold released the initial results from its latest drill program, including 965 grams per tonne of silver equivalent over 29 metres.
Commenting on the results, Andrew Pollard, President and CEO of Blackrock Gold, said the results were “nothing short of remarkable.”
“Given these encouraging initial results, we are mobilising a core drill rig and expanding our initial drill program beyond the previously envisioned 7,000 metres,” he added.
Blackrock Gold (BRC) is up 12.22 per cent and is trading at $1.01 per share at 12:57pm EDT.