Mexico-focused exploration company Discovery Metals has announced a C$9-miillion nonbrokered private placement of shares, in which investor Eric Sprott has agreed to participate.
The TSX-V-listed firm will issue 23 216 174 common shares at C$0.23 a share and 15 935 000 subscription receipts at the same price.
Sprott has agreed to purchase 17 564 000 common shares of the private placement, which will result in him holding 19.9% of Discovery’s issued and outstanding shares. In addition, Sprott will acquire 15 935 000 subscription receipts which, if converted, will maintain his 19.9% interest in Discovery following the completion of the acquisition of Levon Resources.
“We are excited to have Mr. Sprott’s support as we enter into our next phase of growth. His investment ensures Discovery is well funded to pursue its exploration plans for its Coahuila projects and also for the Cordero project, which will be added to Discovery’s portfolio upon closing of the Levon transaction,” said Discovery CEO Taj Singh.
The proceeds of the private placement will be used primarily to fund Discovery’s continuing exploration programme at Cordero, following the closing of the Levon transaction, and the Coahuila projects (Puerto Rico, Minerva and Monclova).