VANCOUVER (miningweekly.com) – Precious metals investor Eric Sprott will invest C$2-million in gold explorer Northern Superior Resources, which is also undertaking a private placement financing in parallel to raise up to C$2.5-million.
The Sudbury, Ontario-based company said it plans to spend the proceeds on exploration work at its cornerstone Croteau Est project, in Quebec’s famed Chibougamou mining camp, and its district-scale Ti-pa-haa-kaa-ning (TPK) gold/silver/copper property, in north-western Ontario.
“These financings could raise up to C$4.5-million, allowing Northern Superior to aggressively advance exploration on the company’s key properties in Quebec and Ontario. We look forward to the initiation of a series of exciting exploration programmes on our two key properties over the coming months,” president and CEO Dr Tom Morris stated.
Privately held 2176423 Ontario Limited, a company controlled by Sprott, has agreed to a nonbrokered private placement to acquire 40-million units in Northern Superior at a price of C$0.05 apiece. Each unit comprises one common share and a nontransferrable purchase warrant at a strike price of C$0.75 for a period of two years.
As long as Sprott maintains a minimum 10% stake in the company, he will be allowed to nominate one person to the board.
Northern Superior’s concurrent private placement comprises units under the same terms as the Sprott offering and flow-through common shares, at a price of C$0.055 each, for combined gross proceeds of C$2.5-million. Subscribers will be given a choice of receiving either units or flow-through shares, or a combination of both.
Northern Superior's TSX-V-listed shares jumped 40% on the news on Monday, to trade at C$0.07 apiece.