- 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.