Great to see this was done so quickly, Sprott has a template that basically all he has to do is sign it, clearly not much negotiating. All eyes are going to be waiting to see how long it takes to get a drill rig on the property. Then there will be some action with $12 M in the bank.
Mr. Michael Collins reports
EXPLOITS DISCOVERY ANNOUNCES CLOSING OF $8 MILLION INVESTMENT BY ERIC SPROTT AND NEW FOUND GOLD
Exploits Discovery Corp., further to its news release of May 12, 2021, has closed its non-brokered private placement with Eric Sprott and New Found Gold Corp., raising $8-million by the issuance of 13,333,334 units at a price of 60 cents per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at an exercise price of 70 cents for a period of 24 months expiring May 14, 2023. The securities are subject to a four-month hold period expiring Sept. 15, 2021. The proceeds from the private placement will be used for exploration on the company's properties, the acquisition of additional properties, marketing and general working capital.
New Found acquired 6,666,667 units under the private placement for total consideration of $4-million. Prior to the financing, New Found beneficially owned and controlled 6,562,799 common shares. As a result of the private placement, New Found beneficially owns and controls 13,229,466 common shares of the company and 6,666,667 warrants, representing approximately 13.6 per cent of the issued and outstanding common shares of the company on a non-diluted basis and approximately 19.2 per cent on a fully diluted basis assuming exercise of the warrants.
The units were acquired by New Found for investment purposes. New Found has a long-term view of the investment and may acquire additional securities of the company, including on the open market or through private acquisitions, or sell securities of the company, including on the open market or through private dispositions, in the future depending on market conditions, reformulation of plans and/or other factors that New Found considers relevant from time to time.
A copy of New Found's early warning report will appear on New Found's profile on SEDAR and may also be obtained by calling New Found's office at 604-562-9664, 800 West Pender St., Suite 1430, Vancouver, B.C., V6C 2V6).
Mr. Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 6,666,667 units under the private placement for total consideration of $4-million. Prior to the financing, Mr. Sprott beneficially owned and controlled eight million common shares and eight million warrants. As a result of the private placement, Mr. Sprott beneficially owns and controls 14,666,667 common shares of the company and 14,666,667 warrants, representing approximately 15.1 per cent of the issued and outstanding common shares of the company on a non-diluted basis and approximately 26.3 per cent on a fully diluted basis assuming exercise of the warrants.
The units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the company, including on the open market or through private acquisitions, or sell securities of the company, including on the open market or through private dispositions, in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time.
A copy of Mr. Sprott's early warning report will appear on Exploit's profile on SEDAR and may also be obtained by calling Mr. Sprott's office at 416-945-3294, 200 Bay St., Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J1.
Michael Collins, president, chief executive officer and director, stated: "With the close of this funding, Exploits will be able to expand its drill plans, geophysics and modelling to improve targeting and optimize our exploration program. With five drill permits in hand and a drill rig mobilizing shortly, Exploits is positioned for discovery and delivering value to our shareholders."
About Exploits Discovery Corp.
Exploits is a Canadian mineral exploration company focused on the acquisition and development of mineral projects in Newfoundland, Canada. All projects within Exploits' portfolio lie within the Exploits subzone. The company currently holds the Jonathan's Pond, Dog Bay, Mt. Peyton, Middle Ridge, True Grit, Great Bend and Gazeebow projects, which cumulatively cover an area of over 2,000 square kilometres.
The company believes that the Exploits subzone, which runs 200 kilometres from Dog Bay southwest to Bay d'Espoir, has been neglected since the last major exploration campaigns in the 1980s. The last 40 years have seen incremental advancements in the understanding of gold mineralization in the camp. The sum of this knowledge is now coming together in discrete and effective exploration models that have delivered discovery, such as New Found Gold's 2019 discovery drill interval of 92.9 grams per tonne gold (g/t Au) over 19.0 metres near surface. The Exploits subzone and Grub regions have been the focus of major staking and financing throughout 2020, with increased exploration activities forecasted in the area moving into 2021.
The team at Exploits, with significant local experience and knowledge, has studied the entirety of the Exploits subzone and picked individual land packages for staking or joint venture, where there is an opportunity for world-class discoveries and mine development. Exploits intends to leverage its local team and the larger shift in understanding and become one of the most extensive explorers in the Exploits subzone.