- Microcap mining stock Solitario Resources (TSX:SLR) has secured a $2.5 million investment from Newmont Overseas Exploration
- Solitario will use the proceeds to advance exploration activities at its core projects
- The financing elevates Newmont into Solitario’s largest shareholder at 9.95 per cent of shares outstanding
- Solitario is a natural resource exploration company focused on high-quality Tier-1 gold and zinc projects in the United States and South America
- Solitario Resources stock (TSX:SLR) is unchanged, trading at $0.68 per share
Solitario will use the proceeds to advance exploration activities at its core projects, as well as for general corporate purposes.
Newmont will purchase 4,166,667 SLR shares priced at $0.60 on a private placement basis pursuant to exemptions from registration with the Securities and Exchange Commission.
With this financing, Newmont becomes Solitario’s largest shareholder at 9.95 per cent of outstanding shares.
The stock purchase agreement grants Newmont a pre-emptive right, registration rights, anti-dilution rights, and certain rights with respect to the sale, financing and operation of the company’s Gold Crest assets.
“Newmont has been a long-term shareholder of Solitario. This financing enhances our existing cash and marketable securities balance to approximately US$6.1 million,” Chris Herald, president and CEO of Solitario, said in a statement.
Solitario is a natural resource exploration company focused on high-quality Tier-1 gold and zinc projects. The company owns a 100-per-cent interest in the 33,000-acre Golden Crest gold project in South Dakota, where it has discovered more than 15 areas with significant gold mineralization at surface and is permitting a drilling program to test for gold in the sub-surface. Solitario is also active on the Florida Canyon zinc project in Peru and Lik zinc project in Alaska.
Solitario Resources stock (TSX:SLR) is unchanged, trading at $0.68 per share as of 11:32 a.m. ET.
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