the NFG gold rush ain't over. Sprott now @32% on Canstar too
Canstar investor Sprott to increase control to 32%
2021-07-08 20:46 ET - News Release
Mr. Eric Sprott, shareholder, reports
ERIC SPROTT ANNOUNCES INVESTMENT IN CANSTAR RESOURCES INC.
Today 2176423 Ontario Ltd., a corporation which is beneficially owned by Eric Sprott, entered into an agreement to purchase 17,336,339 common shares of Canstar Resources Inc. (representing an increase of approximately 17.4 per cent of the outstanding shares on a partially diluted basis since the filing date of the most recent early warning report) at a price of 37.5 cents per share for aggregate consideration of $6,501,127. The shares were purchased by way of private agreement with a single vendor at a price less than 115 per cent of the "market price" of the shares in reliance on the "private agreement exemption" in Section 4.2 of National Instrument 62-104 Take-Over Bids and Issuer Bids. 2176423 Ontario is beneficially owned by Mr. Sprott.
After the closing of this private agreement purchase (expected to occur in two tranches on or about July 15, 2021, and Aug. 17, 2021), Mr. Sprott will beneficially own and control 27,863,339 shares and 10,527,000 share purchase warrants, representing approximately 32.0 per cent of the outstanding shares on a non-diluted basis and approximately 39.3 per cent on a partially diluted basis assuming the exercise of such warrants. Mr. Sprott currently beneficially owns and controls 10,527,000 shares and 10,527,000 warrants of the company (representing approximately 12.1 per cent on a non-diluted basis and approximately 21.6 per cent on a partially diluted basis).
The shares will be acquired by Mr. Sprott through 2176423 Ontario for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Canstar Resources, including on the open market or through private acquisitions, or sell securities of Canstar Resources, including on the open market or through private dispositions in the future, depending on market conditions, reformulation of plans and/or other relevant factors.