- Canadian precious metals investor, Eric Sprott, has acquired a C$2 million stake in Avidian Gold (AVG) as part of a previously announced private placement
- Under the terms of the placement, the company issued a total of 20 million units at a price of 10 cents each, all of which were acquired by Eric
- Following the closing of the placement, Eric will hold approximately 29.76 per cent of Avidian’s outstanding common shares on a partially diluted basis
- The proceeds raised will be used to advance the development of Avidian’s minerals properties in Alaska and Nevada
- Avidian Gold (AVG) is up 1.96 per cent and is trading at 26 cents per share at 12:43pm EDT
Canadian precious metals investor, Eric Sprott, has acquired a C$2 million stake in Avidian Gold (AVG) as part of a private placement.
Under the terms of the non-brokered placement, which was originally announced on July 6, 2020, the company issued a total of 20 million units at a price of 10 cents each, all of which have been purchased by Eric.
Avidian had originally sought to raise $2.5 million through the issuance of 25 million units, but the company’s management determined that it was in the best interests of shareholders to downsize the offering.
Each unit is comprised of one common share in Avidian and one common share purchase warrant, which will be exercisable at a price of 14 cents over a period of 24 months.
With the placement now complete, Eric – who previously did not have a holding in the company – now owns approximately 17.48 per cent of Avidian’s issued and outstanding shares on a non-diluted basis, or roughly 29.76 per cent on a diluted basis assuming the exercise of the warrants.
David Anderson, Chairman and CEO of Avidian Gold, said he is very pleased to welcome Eric as a major shareholder.
“Eric is a recognised gold expert and his investment in Avidian is in our opinion, recognition of the potential of the advanced stage, exploration projects we hold in Alaska and Nevada.
“His investment is significant and timely as we launch our summer programs. We look forward to announcing detailed exploration plans in the coming days,” he added.
Avidian currently holds an advanced-stage gold-copper exploration portfolio in south-central Alaska, including the Golden Zone project which has an indicated gold resource of 267,400 ounces. In addition, the company operates the Jungo gold-copper property in Nevada.
Avidian Gold (AVG) is currently up 1.96 per cent and is trading at 26 cents per share at 12:43pm EDT.