Adventus Mining Corporation (TSXV: ADZN) announced this morning that it has entered into an agreement with 2176423 Ontario, a private company controlled by Canadian investor Eric Sprott, to sell all of the common shares held of Canstar Resources (TSXV: ROX) by the company. The transaction is reported to be for gross proceeds amounting to $6.5 million.
The transaction will see Adventus sell all of its 17,336,339 Canstar common shares to Eric Sprott at $0.375 per share. As a result of the transaction, Adventus will no longer hold any Canstar common share and has thereby reduced its security holdings in the company below 10%.
The sale is scheduled to take place in two tranches with the transaction related to the first 10,401,802 Canstar shares expected to close on July 15, 2021. The remaining 6,934,537 Canstar shares are expected to be released from escrow on August 17, 2021.
In a statement, Adventus CEO Christian Kargl-Simard said the company will be focusing on advancing and de-risking its copper-gold business in Ecuador, hence the selling of its Canstar shares. Proceeds from the transaction will be utilized in the exploration and development of said business, as well as general working capital and corporate purposes.
Following the closing of the transaction, Sprott will hold a 39.3% stake in Canstar Resources on a partially diluted basis.
Adventus Mining last traded at $1.04 on the TSX while Canstar Resources last traded at $0.495 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.