Blackrock Gold Corp (CVE:BRC) announced Monday a C$7.5 million non-brokered private placement, with well-known Canadian resource investor and gold bull Eric Sprott agreeing to purchase C$5 million of the offering.
The Vancouver-based company said it plans to issue 10,416,667 units at C$0.72 each and intends to spend the proceeds on expanding its exploration program at the Tonopah West property in Nevada, as well as for general working capital.
Each unit consists of one common share and one-half of one share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share at C$1 each for a period of two years from the date the units are issued.
READ: Blackrock Gold reports high-grade intercepts of up to 2,198 g/t silver equivalent at Tonopah West in Nevada
Blackrock Gold said the offering is scheduled to close on or about July 31, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The units to be issued have a hold period of four months and one day from the closing date.
The company said it will pay a 6% finder’s fee in cash and finder's warrants equal to 6% of units placed by the finder, with each finder's warrant exercisable for one common share for a two-year term at C$1 each.
Just recently, Blackrock Gold announced encouraging high-grade drill results from the Tonopah West project. The company drilled three metres of 2,198 grams per ton (g/t) silver equivalent in a new vein in drill hole TW20-001 and intersected 965 g/t silver equivalent over 29 metres, extending the Victor vein by 30 metres down plunge.
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