- Eric Sprott, mining’s Warren Buffett, will invest C$2 million into junior miner Storm Exploration (TSXV:STRM).
- The company is active on three district-scale projects in Northwestern Ontario.
- Storm Exploration stock has added 96 per cent year-over-year.
Eric Sprott, mining’s Warren Buffett, will invest C$2 million into junior miner Storm Exploration (TSXV:STRM), whose 6,016-hectare Gold Standard project in Northwestern Ontario, about 65 kilometres north of the city of Fort Frances, commands multi-million-ounce potential backed by a trio of high-grade gold showings and grab samples up to 166 grams per ton (g/t) gold.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Proceeds will support exploration drilling at Gold Standard, as well as general corporate and working capital purposes.
Financing details
Sprott will purchase 5 million units priced at C$0.40 through 2176423 Ontario Ltd., a corporation he owns, making him an insider and the company’s largest shareholder at a more than 10 per cent stake.
Each unit consists of one Storm common share and one half of one share purchase warrant, with each warrant entitling the holder to purchase one share for C$0.55 for 2 years from the closing of the offering.
All securities issued, contingent on all necessary approvals, are subject to a four month and one day hold period in accordance with Canadian law.
Leadership commentary
“Mr. Sprott’s investment will strengthen Storm’s treasury and shareholder base,” Bruce Counts, President and Chief Executive Officer of Storm Exploration, said in Wednesday’s news release. “Junior exploration is speculative. We appreciate the confidence he has shown in our team. Storm is about to commence up to 3,000 metres of drilling at Gold Standard, transitioning from speculation to verification of the large volcanogenic massive sulphide target. We are entering an exciting phase of exploration.”
Looking ahead
Storm is also developing its 12,482-hectare Keezhik project, 380 km north of Thunder Bay, whose multiple, drill-tested showings yielded up to 47.7 g/t gold over 0.6 metres along the same regional shear zone as Newmont’s more than 6-million-ounce Musselwhite mine.
Add to that its nearby 23,262-hectare Attwood project, whose extensive sulphide mineralization, faulting and folding indicate the potential for gold mineralization.
About Storm Exploration
Storm Exploration is a Canadian mineral exploration company active on three district-scale projects in Northwestern Ontario.
Storm Exploration stock (TSXV:STRM) is up by 4.26 per cent on the news trading at C$0.49 as of 9:37 am ET. The stock has added 96 per cent year-over-year.
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