Amarillo Gold - Eric Sprott.
Eric Sprott.
Source: Mining Weekly.
  • Canadian billionaire Eric Sprott is set to acquire a C$500,000 stake in Decade Resources (TSXV:DEC) as part of a non-brokered private placement
  • The company intends to issue a total of 24 million flow-through units at a price of $0.05 each for a total of $1.2 million, 10 million of which will be purchased by Eric
  • Each unit will be comprised of one common share and one non-transferable share purchase warrant, exercisable at a price of $0.08
  • The proceeds raised will be used to fund an exploration program at the company’s Del Norte gold-silver project in British Columbia
  • Decade Resources (DEC) is currently steady at $0.12 per share at 11:54am EDT

Canadian billionaire Eric Sprott is set to acquire a C$500,000 stake in Decade Resources (TSXV:DEC) as part of a non-brokered private placement.

Under the terms of the placement, the Stewart, British Columbia-based company will issue up to 24 million flow-through units at a price of $0.05 each for a total of $1.2 million. Pursuant to today’s announcement, Eric has already subscribed for 10 million units.

Each unit will be comprised of one common share in the capital of the company and one non-transferable share purchase warrant. These warrants will entitle the holder to acquire an additional common share at a price of $0.08 over an exercise period of two years from the date of issuance.

A finder’s fee may be issued to certain parties in line with the policies of the TSX Venture Exchange, and all securities will be subject to a four-month holding period.

The proceeds raised will be used to fund an exploration program at Decade’s Del Norte gold-silver project in the Skeena Mining Division of British Columbia.

Ed Kruchkowski, President of Decade Resources, said he is very pleased to welcome Eric as a key shareholder in the company.

“His investment is a strong endorsement of our exploration efforts in testing the gold-silver potential of the Del Norte property optioned from Teuton Resources,” he added.

Under the terms of the deal with Teuton, Decade may earn up to a 55 per cent interest in the 5,830-hectare property by making a total cash payment of $400,000 over a four-year period. 

The company will also need to issue 800,000 common shares upon closing of the agreement, along with a further $180,000 in common shares over four years. Finally, Decade is required to assume $4 million in exploration expenses over a period of five years.

A further 20 per cent interest in the project may also be acquired by entering it into commercial production.

Decade Resources (TSXV:DEC) is currently steady and is trading at 12 cents per share at 11:54am EDT.

More From The Market Online

SSR Mining reviews deadly landslide, faces class-action lawsuits

SSR Mining (TSX:SSRM) faces mounting losses after a series of negative developments, culminating in a securities class action lawsuit.

Spanish Mountain Gold forms partnership for sustainable mining

Spanish Mountain Gold (TSXV:SPA) enters into a partnership with ANDRITZ and BC Hydro to reduce carbon intensity.
Pulsar Helium

Junior helium stock to benefit from new legislation in U.S.

Pulsar Helium (TSXV:PLSR), a junior exploration stock, will benefit from new U.S. legislation on non-hydrocarbon gases.

Three junior copper stocks for the long run

Copper demand has pushed prices to their highest level since 2022, shedding light on steep undervaluation in the junior mining space.