Blackrock Gold Corp (CVE:BRC) has closed a $7.5 million financing boosted by mining magnate Eric Sprott, the company said Tuesday.
Sprott invested $5 million in the Vancouver-based company, which is advancing a portfolio of precious metals projects in Nevada.
Blackrock said it plans to use the funds from the private placement to expand its exploration program on the company’s Tonopah West property, where the explorer recently drilled three metres of 2,198 grams per ton (g/t) silver equivalent in a new vein and intersected 965 g/t silver equivalent over 29 metres.
READ: Blackrock Gold announces C$7.5 million private placement as gold bull Eric Sprott agrees to purchase C$5 million
Under the term sheet, the company issued a total of 10,416,667 units priced at C$0.72 per unit, which consists of one share and one-half of one warrant entitling the holder to purchase one share at a price of C$1 for a two-year term.
Blackrock paid Red Cloud Securities Inc, Mackie Research Capital Corporation and PI Financial Corp finders fees of C$399,280.32, or 6% of the proceeds raised and issued to the finders a total of 554,556 non-transferable finder warrants at an exercise price of C$1 until July 31, 2022.
A portion of the proceeds will also go towards working capital.
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