- Precious metals investor Eric Sprott is set to expand his holding in Discovery Metals (DSV) by a further C$15 million as part of a private placement
- The company intends to issue 25.9 million units at a price of $1.35 each for a total of $35 million
- Eric has indicated his intention to acquire 11.11 million units, which will increase his total holding in Discovery Metals to roughly 27.1 per cent
- The proceeds raised by the company will be used to fund ongoing exploration work at its Cordero and Coahuila projects in Mexico
- Discovery Metals (DSV) is currently up 10.61 per cent and is trading at $1.46 per share
Precious metals investor Eric Sprott is set to expand his holding in Discovery Metals (DSV) by a further C$15 million.
Under the terms of a private placement, the company intends to issue 25.9 million units at a price of $1.35 each for a total of $35 million. These units will be comprised of one common share in Discovery Metals and half of one common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional common share at a price of $1.75, exercisable over a period of two years from the date of issuance.
As it stands, Eric has indicated his intention to acquire 11.11 million units for $15 million, which is expected to bolster his holding in Discovery Metals to a total of 27.1 per cent on an undiluted basis.
Eric said that he has continually grown his position in the company, which is now one of his largest investments in the silver sector.
“Discovery provides unmatched leverage to a rising silver price and I am very encouraged to see the Discovery team continue to execute on their plans at the Cordero project,” he added.
The proceeds raised under the offering will be used to fund ongoing exploration work at Discovery Metals’ Cordero and Coahuila projects in Mexico, as well as for general working capital purposes.
Taj Singh, President and CEO of Discovery Metals, said he is very pleased with the continued support from one of the company’s largest shareholders.
“Recent drill results show that our 100 per cent-owned Cordero project is developing all the attributes of a tier one project – grade, scale, significant organic growth opportunities and well located in one of Mexico’s premier mining belts.
“The current financing, priced at a premium to market, reflects strong institutional demand, and will create an industry leading balance sheet with over $75 million in cash allocated for aggressive exploration, resource expansion, and future development,” he said.
Discovery Metals (DSV) is up 10.61 per cent and is trading at $1.46 per share at 10:14am EDT.