Tudor Gold - Eric Sprott.
Eric Sprott.
Source: Bloomberg.
  • Canadian precious metals investor Eric Sprott is set to purchase a C$1 million interest in Victoria-based explorer GoldON Resources (GLD)
  • The company intends to issue just over 1.1 million units at a price of $0.90 each, all of which will be purchased by Eric
  • Each unit will consist of one common share and one share purchase warrant, exercisable at a price of $1.35 per share
  • The proceeds will be used to fund a Phase 2 drilling program at the company’s West Madsen Project in northwest Ontario
  • GoldON Resources is currently up 1.85 per cent to $1.10 per share

Canadian precious metals investor Eric Sprott is set to purchase a C$1 million interest in Victoria-based explorer GoldON Resources (GLD).

Under the terms of the placement, the company intends to issue just over 1.1 million units at a price of $0.90 each, all of which will be acquired by Eric.

Each unit will be comprised of one common share in GoldON Resources and one common share purchase warrant, exercisable at a price of $1.35 per share for a period of two years.

Upon completion of the offering, the company says the proceeds will be used to fund a Phase 2 drilling program at its West Madsen Project in the heart of northwestern Ontario’s prolific Red Lake Gold Camp.

Covering a total of 4,700 hectares, the project consists of the Block A and B claims, where GoldON has an option to acquire a 100 per cent interest pursuant to an agreement signed with Great Bear Resources in May 2019.

The West Madsen Project also includes the Flat Lake and Madsen-Medicine Stone claim groups – which lie directly next to Block A – and may also be wholly purchased by GoldON according to a deal signed in July this year with Bounty Gold.

The focus of the Phase 2 program will be on the Block A claim and has been budgeted for up to 7,000 metres. This work will test the strike extension of gold mineralisation to the east, and will follow-up on gold mineralisation identified during Phase 1.

According to a November 12 announcement, Chibougamau Diamond Drilling has been contracted to carry out the drilling work.

GoldON Resources is currently up 1.85 per cent to $1.10 per share at 10:02am EST.

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