The share price of TSX-V-listed KORE Mining rose 18% after the company on Friday announced a follow-on strategic investment from its two major shareholders.
Investor Eric Sprott, through 2176423 Ontario, and Macquarie Bank are subscribing for a private placement of C$3-million, consisting of 6 666 666 shares at C$0.45 a share.
KORE’s shares traded at $0.59 a share on Friday.
President and CEO Scott Trebilcock commented that the continued support by its major shareholders was a “strong endorsement for KORE's portfolio of advanced gold assets”.
"KORE remains committed to pursuing value through exploration and development. The company is immediately commencing follow-up work on high priority Mesquite East exploration targets while continuing to drill at FG Gold and keeping Imperial on-track to move into permitting in mid-2020," he said.
Sprott commented in a statement that he was pleased to continue supporting KORE.
"Backed by ounces in the ground and a strong PEA [preliminary economic assessment] on the Imperial project, KORE's value proposition remains strong.”
Net proceeds of the placement will be used to advance the Imperial project and Long Valley projects, in California, as well as for general corporate and working capital purposes.
Upon completion of the financing Sprott will hold 15.3% and Macquarie will hold 8.5% of the company's issued share capital on a non-diluted basis.
There are no warrants associated with the private placement.