Sky Gold Corp. V.SKYG

Stockwatch Gold Summary for July 29, 2022

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Gold Summary for July 29, 2022 2022-07-29 18:12 ET - Market Summary by Stockwatch Business Reporter Toronto-based billionaire Eric Sprott is having a tough summer. Investors are awaiting word that New Found Gold Corp. ( $NFG ) will complete the second tranche of a major investment from Mr. Sprott as expected in early August. Late in April, when Mr. Sprott bought 8.25 million shares at $8.35 in a first tranche, the company and its major backer said that the second tranche of 6.75 million shares at $8.45 would close on or about August 5, 2022. That full $125.9-million investment, if completed as promised, had dwindled to a value of just $70-million earlier this week, although it has since bounced back a bit. (New Found Gold added 52 cents on Thursday and reclaimed another 20 cents today, closing at $5.52 on 238,000 shares.) Mr. Sprott currently holds 32.85 million shares, 19.99 per cent of the company, and many of those shares were acquired at prices higher than today's close. Meanwhile, the tumbling gold market has forced Mr. Sprott to let millions of warrants expire. Warrants acquired during gold's long bull run often provided him cheap new shares, but those days are over for now. Twice this month, Mr. Sprott let warrants to buy shares of Spanish Mountain Gold Ltd. ( $SPA ) expire unexercised. On July 13, warrants to buy 20 million shares at 15 cents passed away, and this week, warrants to acquire 16.67 million shares at 45 cents expired. Spanish Mountain rose one-half cent to 17 cents on 171,000 shares today. Mr. Sprott also let 11.5 million warrants of Strikepoint Gold Inc. ( $SKP ) expire unexercised this week. They had been attached to 23 million shares that he bought two years ago at just 8.5 cents. (In 2017, Mr. Sprott bought his first 6.84 million Strikepoint shares at 29.23 cents apiece.) Strikepoint jumped two cents to 10.5 cents on 1.04 million shares today. Also this week, Mr. Sprott's 5.25 million warrants to buy shares of Sky Gold Corp. ( $SKYG ) at 15 cents apiece expired. He acquired those warrants two years ago attached to the 11 million Sky Gold shares that he bought at 10 cents apiece. That investment is under water, although Sky Gold closed today up 1.5 cents to 5.5 cents on 262,000 shares. Mr. Sprott also let warrants to buy shares of several other companies expire this month, indicating that he was a major buyer of junior gold explorers in mid-2020 while the sector struggled to recover from the COVID blahs. He continues to be a gold bug: Just a week ago, Mr. Sprott bought $2-million of stock in Peter Akerley's Erdene Resource Development Corp. ( $ERD ) at 30 cents -- and yes, the shares came with one-half warrant attached, exercisable at 45 cents. Erdene, which is putting the cash into its Bayan Khundii gold project in Mongolia, lost one-half cent to 29.5 cents on 191,000 shares today.