Golden Spike Resources
(Source: Golden Spike Resources)
  • Golden Spike Resources (CSE:GLDS) is undertaking an up to $600,000 non-brokered private placement, including participation from billionaire mining investor Eric Sprott
  • Sprott’s stake is directly tied to the prospectivity of the junior miner’s flagship 3,425-hectare Gregory River property in Newfoundland
  • Golden Spike is a Canadian mineral exploration company focused on identifying, acquiring and unlocking value through opportunities in Canada and other low-risk jurisdictions. 
  • Shares of Golden Spike Resources have posted a 58.70 per cent loss since 2021

Golden Spike Resources (CSE:GLDS) is undertaking an up to $600,000 non-brokered private placement, including participation from billionaire mining investor Eric Sprott.

Proceeds will go towards exploring the company’s 100%-owned Gregory River copper-gold property in Newfoundland.

The company will offer up to 4 million units priced at $0.15, with each unit composed of one common share and one-half of one transferable common share purchase warrant, and each warrant entitling the holder to purchase one GLDS common share for $0.30 for up to two years from the closing of the offering.

The oversubscribed offering, expected to close by June 14, 2024, includes a lead order from Sprott that nudges him past 10% ownership, granting him insider status at Golden Spike, as well as meaningful exposure to the company’s future cash flows.

Why did Eric Sprott invest in Golden Spike Resources?

The motivation behind Sprott’s allocation in Golden Spike is directly tied to the prospectivity of its flagship 3,425-hectare Gregory River property in Newfoundland.

The property, on trend with York Harbour Metals’ eponymous high-grade project, is in the middle of an 11-kilometre stretch of the Gregory River volcanogenic massive sulphide (VMS) corridor, where several copper-gold-zinc VMS prospects and targets have been identified since the 1920s, in addition to multiple high-grade copper-gold veins.

Golden Spike will begin prospecting, sampling and induced polarization/resistivity surveys at Gregory River this summer focused on three target areas with demonstrated potential, including a series of sub-parallel, high-grade copper-gold veins. 

Should the company’s highly qualified leadership team prove successful at delineating drill targets for the fall, positive news flow will likely experience added leverage – supposing copper and gold maintain gains from their recent resurgences – positioning shareholders to capitalize on Golden Spike’s 58.70 per cent loss since 2021.

Leadership insights

“We are incredibly excited to launch Golden Spike’s 2024 exploration programs, and having the continued backing of a distinguished investor like Eric Sprott is a tremendous endorsement of our vision,” Keith Anderson, Golden Spike’s chief executive officer, said in a statement. “His support, especially at a time when key commodities such as copper and gold are entering a major bullish phase, greatly enhances our confidence and momentum as we move forward.”

About Golden Spike Resources

Golden Spike is a Canadian mineral exploration company focused on identifying, acquiring and unlocking value through opportunities in Canada and other low-risk jurisdictions. 

Golden Spike Resources Corp. (CSE:GLDS) is up by 8.57 per cent trading at C$0.19 per share as of 11:33 am ET. 

Join the discussion: Find out what everybody’s saying about this copper and gold stock on the Golden Spike Resources Corp. Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.

(Top photo of gold mineralization on the Gregory River property: Golden Spike Resources.)


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