- Decade Resources (DEC) has raised C$1.1 million in a private placement backed by Canadian precious metals billionaire Eric Sprott
- The company issued a total of 10 million flow-through units at a price of 10 cents each, along with 1 million non-flow-through units at the same price
- Eric acquired five million units under the placement, bumping his total holding in Decade Resources to approximately 13 per cent on a partially diluted basis
- The proceeds will be used to fund exploration at the company's Del Norte and Lord Nelson projects
- Decade Resources (DEC) is currently steady at 7.5 cents per share
Decade Resources (DEC) has raised C$1.1 million in a private placement backed by Canadian precious metals billionaire Eric Sprott.
Under the terms of the placement, which was announced on September 14, the company issued a total of 10 million flow-through units at a price of $0.10 each.
These units are comprised of one flow-through common share and one non-flow-through common share purchase warrant.
Decade Resources also issued 1 million non-flow-through units, also at a price of $0.10 each.
These units are comprised of one common share in the company and one common share purchase warrant.
Each warrant will entitle the holder to acquire an additional common share at a price of $0.12, exercisable over a period of 24 months from the date of issuance.
Pursuant to the financing, Eric acquired 5 million units for a total of $500,000. With the placement now complete, he currently holds approximately 13 per cent of Decade Resources' issued and outstanding securities on a partially diluted basis.
This comes after a separate investment made in early July this year, under which Eric purchased 10 million units at a price of $0.05 each.
Decade Resources intends to use the proceeds to fund exploration work at the adjoining boundaries of its Del Norte and Lord Nelson projects, roughly 34 kilometres east of Stewart, British Columbia.
On August 25 this year, the company signed an option agreement with Teuton Resources to acquire a 75 per cent stake in the Los Nelson property, which consists of six separate claims over 2,630 hectares.
Under the terms of the agreement, Decade may acquire an initial 55 per cent interest by paying a total of $100,000 in cash to Teuton, with an initial payment of $10,000, and issuing 400,000 shares upon signing.
Decade will also issue $40,000 worth of its shares to Teuton over a four year period and assume property-related expenses totalling $2 million over a period of five years.
A further 20 per cent may be acquired by entering the Lord Nelson property into production.
Decade Resources (DEC) is currently steady at 7.5 cents per share at 2:08pm EDT.