https://www.miningweekly.com

Redstar’s stock spikes as Eric Sprott takes 12.1% stake

24th August 2016

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

VANCOUVER (miningweekly.com) – The TSX-V-listed stock of North America-focused exploration firm Redstar Gold spiked by as much as 30% on Tuesday, after precious-metals heavyweight investor Eric Sprott agreed to take a 12.1% stake in the company.

Sprott (71), a renowned and respected leader in the investment community, is one of the world's best gold and silver investors, and his C$3-million endorsement prompted the Redstar stock to rise four cents to C$0.17 apiece in intraday trading.

Sprott has agreed to acquire 30-million Redstar common shares at C$0.10 apiece as part of a financing of up to 41-million common shares, to be conducted in two tranches.

The first tranche comprises 20.4-million shares issued at C$0.10 each and is expected to close this week. The second tranche of up to 20.6-million shares at the same price, or C$2.06-million, is expected to close on, or before, August 31.

Redstar president and CEO Peter Ball stated that the proceeds of the financing would be used to start its next drilling programme on the high-grade Shumagin gold zone, at its 100%-controlled Unga project, in Alaska.

According to Redstar, the Shumagin prospect is characterised by multi-episodic gold-silver bearing quartz-adularia-rhodochrosite breccia bodies that occur within structurally controlled dilation zones along the more than 1 200-m-long Shumagin Scarp. High-grade gold/silver mineralisation is open at depth within the main breccia body at Shumagin. Multiple dilation zones and coincident gold-silver bearing breccia bodies exist along strike of the Shumagin Scarp and remain to be fully drill tested, the company said.

In Nevada, Redstar is seeking suitable partners to advance its portfolio of 11 fully owned properties located along and within many of the major gold producing trends. Redstar also owns 30% of the Newman Todd gold project, in Red Lake, Ontario, which is a high-grade gold discovery along a 1.8 km corridor within the Newman Todd Structure.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 
Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.122 0.157s - 107pq - 2rq
Subscribe Now