Sassy Resources Corporation (CSE:SASY) (OTCQB:SSYRF) (FRA:4E7) has announced that renowned resources investor Eric Sprott is increasing his ownership in its Gander Gold Corporation subsidiary to 17.35% - a holding of 10,666,666 special warrants - by purchasing $1.6 million of a $2.2 million private placement in Gander Gold.
Sprott is purchasing 8 million special warrants of Gander Gold at $0.20 per special warrant, a 33% premium to the previous private placement price on a post-consolidated basis. The company noted that strategic investors are acquiring the balance of three million special warrants at $0.20 per special warrant. The special warrants will be converted into common shares at a later date.
The financing is expected to close in early June 2021.
READ: Sassy Resources expands Newfoundland property holdings
In a statement, Mark Scott, Sassy president and CEO, commented: "The additional $2.2 million injection into Gander Gold, nearly 75% of it coming from Mr Sprott, will allow us to significantly expand our current program across multiple projects that comprise the largest land position of any public company in Newfoundland.
"We look forward to updating shareholders on our exploration progress in Newfoundland in the near future. Meanwhile, we're working diligently on a plan to list Gander Gold on a Canadian exchange. We appreciate Mr Sprott's additional investment in Gander Gold which lifts our total raise to $5,000,000 to date."
On May 14, Sassy revealed that Gander Gold had expanded its Newfoundland property holdings by 876 square kilometers (sq km).
The 3,503 newly acquired claims now encompassing 2,257 s km over a large portion of the Mount Peyton Intrusive and Gabbroic Complex situated in between New Found Gold’s Keats Zone and Sokoman Minerals’ Moosehead discovery, the company said.
The claims were staked by and optioned from prospector Shawn Ryan and Wildwood Exploration Inc, whose extensive area research has recently led to a new understanding of the potential of the under-explored Mount Peyton Intrusive, Sassy noted.
Contact the author at jon.hopkins@proactiveinvestors.com