Shares of Scottie Resources (TSXV: SCOT) continued to rally on Monday following its latest investment boost. The Vancouver-based gold miner arranged a C$2 million private placement with ‘Bay Street wizard’ Eric Sprott last week, which resulted in the company’s stock rising by more than 20% over the last two trading days.
News of Sprott’s investment comes right after the company released new drill results from the Bow property, located 2 km northeast of its past-producing Scottie gold mine. Drilling highlights include 7.44 g/t gold and 1.29 g/t silver over 34.78 metres.
Pursuant to the placement, Sprott has agreed to purchase 10 million units of the company at C$0.20 each, which would result in him holding approximately 11.5% of the company’s issued and outstanding common shares. Upon closing the placement, if Sprott were to exercise all of his share purchase warrants, he would hold an approximate 20.6% ownership position in Scottie Resources on a partially diluted basis.
Proceeds from the placement will be used for exploration on Scottie Resources’ properties, which are all located in British Columbia’s Golden Triangle.
Apart from the Scottie mine and the contiguous Bow property, the firm also owns the Ruby Silver and Black Hills properties and has the option to purchase the Bitter Creek property.