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Eric Sprott acquires further $15M stake in Discovery Metals (TSXV:DSV)

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TSX:DSV
11 August 2020 15:25 (EDT)

Source: Sprott Money.

Precious metals investor Eric Sprott has acquired an additional C$15 million stake in Discovery Metals (DSV), through a $35 million private placement.

Under the terms of the placement, which was announced on July 24, the company issued a total of 25,927,000 units at a price of $1.35 each. These units are comprised of one common share in Discovery Metals and half of one common share purchase warrant.

Each whole warrant will be exercisable at a price of $1.75 per share over a period of two years from the date of issuance.

Pursuant to his participation, Eric acquired a total of 11,111,000 units. Prior to the placement, he owned 66,025,611 shares in Discovery Metals, representing approximately 27.2 per cent of the company on a partially diluted basis.

However, with the placement now complete, Eric now holds roughly 29.9 per cent of Discovery Metals’ issued and outstanding securities, representing one of his most significant investments in the silver sector.

Taj Singh, President and CEO of Discovery Metals, commented on the completion of the financing.

“With over $80 million of cash on our balance sheet we are in a formidable position to continue to drive value through aggressive exploration, resource growth and future development, and to solidify our position as one of the premier names in the silver space,” he said.

The proceeds raised will be used to fund ongoing exploration activities at the company’s Cordero and Coahuila projects in Mexico, as well as for general working capital purposes.

Discovery Metals (DSV) is currently down 2.77 per cent to $2.46 per share at 1:18pm EDT.

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