It appears that the recent assays of 2,198 grams per tonne silver equivalent announced by Blackrock Gold (TSXV: BRC) have drawn the eyes of famed investor Eric Sprott. The company announced this morning that it will be conduct a private placement for gross proceeds of $7.5 million, of which Sproot intends to take $5.0 million.
The private placement is taking place on a non-brokered bases, with 10,416,667 units of the company being sold at a price of $0.72 per unit, a large 20% discount to yesterdays close. Each unit is to consist of one common share and one half of one share purchase warrant, exercisable at a price of $1.00 for a period of two years.
The placement is expected to close by July 31, 2020, with net proceeds going towards funding an exploration program at Blackrock’s Tonopah West project as well as general working capital.
Blackrock Gold Corp last traded at $0.90 on the TSX Venture.
Information for this briefing was found via Sedar and Blackrock Gold Corp. 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.