- Eric Sprott exercised 2 million Trigon Metals common share purchase warrants through 2176423 Ontario Ltd., a corporation he beneficially owns
- Sprott now owns 33,048,332 shares and 3,357,500 warrants, representing 16.4 per cent of outstanding shares on a non-diluted basis and 17.7 per cent on a partially diluted basis
- Trigon Metals is a resource exploration and production company offering exposure to copper and silver
- Trigon Metals stock has added 53.12 per cent year-over-year and 308.33 per cent since 2019
Eric Sprott exercised 2 million Trigon Metals (TSXV:TM) common share purchase warrants through 2176423 Ontario Ltd., a corporation he beneficially owns.
The warrants allowed Sprott to purchase shares at $0.20 each for total consideration of $400,000. He also let 4,666,666 warrants expire unexercised.
The exercise and expiry result in a 6 per cent decrease in outstanding shares held since the last early warning report.
Prior to exercising the warrants, Sprott owned 31,048,332 shares and 10,024,166 warrants, representing 15.5 per cent of outstanding shares on a non-diluted basis and 19.6 per cent on a partially diluted basis.
After exercising the warrants, Sprott now owns 33,048,332 shares and 3,357,500 warrants, representing 16.4 per cent of outstanding shares on a non-diluted basis and 17.7 per cent on a partially diluted basis.
Why does Eric Sprott hold this stock?
Sprott’s stake in Trigon Metals, just below a 20 per cent control position, can be substantiated by the company’s operational successes.
In August 2023, Trigon restarted copper concentrate production at the Kombat Mine in Namibia, which produced 12.46 million tonnes of ore averaging 2.6 per cent copper from 1962 to 2008. Production in October 2023 from open-pit mining reached 901 tonnes of concentrate grading 29.2 per cent copper. The company has also shown a knack for expanding mineable tonnage at Kombat with enticing drill results as it prepares for underground mining later this year.
In terms of exploration, assays are pending for Trigon’s Silver Hill project in Morocco, an underexplored copper and silver play that has yielded intercepts up to 1,000 g/t silver, while its Addana project, also in Morocco, boasts prospective historical data and grab samples by Trigon up to 564 g/t silver, 24.8 per cent lead and 5.3 per cent zinc.
Additionally, Trigon recently acquired licenses for the 963,000-hectare Kalahari Copperbelt project in Namibia, which is strategically located near some of the world’s largest copper deposits, and where historical drilling produced a top intercept of 83 metres grading 0.7 per cent copper and 17 g/t silver from 102 m.
It also doesn’t hurt that executive chairman Jed Richardson was a former research analyst at Sprott Securities, now known as Cormark Securities, which Sprott founded in 1981.
Trigon Metals stock (TSXV:TM) last traded at C$0.24 per share. The stock has added 53.12 per cent year-over-year and 308.33 per cent since 2019.
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