- Spanish Mountain Gold (SPA) has successfully raised C$4 million, $2 million of which came from prominent precious metals investor, Eric Sprott
- Under the terms of a non-brokered private placement, the company issued a total of 40 million units at a price of 10 cents each
- Spanish Mountain Gold had originally sought to raise just $2 million, but upsized the offering after receiving interest from Eric
- The proceeds will be used to advance work at the company’s Spanish Mountain gold project in British Columbia
- Spanish Mountain Gold (SPA) is currently steady at 20 cents per share
Spanish Mountain Gold (SPA) has successfully raised C$4 million, $2 million of which came from prominent precious metals investor, Eric Sprott.
Under the terms of a non-brokered private placement, the company issued a total of 40 million units at a price of 10 cents each.
According to an announcement dated June 17, Spanish Mountain Gold had originally sought to issue just half of this amount, but subsequently upsized the offering on July 7 after receiving interest from Eric.
Each unit will be comprised of one common share and one common share purchase warrant. These warrants will be exercisable at a price of 15 cents per share over a period of two years from the date of issuance.
Larry Yau, CEO of Spanish Mountain Gold, said he believes the private placement has fulfilled the overall goal of placing shares exclusively with long term supporters of the company.
“The company would like to welcome the many investors from around the globe including a personal investment by Mr. Sprott as our new shareholders and thank a number of existing shareholders for increasing their investment in our project,” he added.
However, Larry also said that he regrets leaving numerous orders for the private placement unfilled as the company strongly believes in maintaining discipline in financing.
The entirety of the proceeds will be used to fund engineering activities at the company’s Spanish Mountain Gold Project in an effort to achieve significant predetermined milestones within the next 12 months.
This is expected to include a summer field work program, as well as the completion of a maiden preliminary feasibility study. Such a study will determine a reserve statement for Phase One of a key mineral deposit, as outlined in a preliminary economic analysis from October 23, 2019.
Spanish Mountain Gold (SPA) is currently steady at 20 cents per share at 12:02pm EDT.