Sprott ups stake in GoldSpot to 10.8%

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Mining financier Eric Sprott has increased his stake in GoldSpot Discoveries Corp. [SPOT-TSXV, SPOFF-OTCQX] to 10.8%, the company said in a news release.

Through an Ontario numbered company GoldSpot said Sprott acquired 863,000 common shares between May 6 and May 27, 2021. The financier paid between 81 cents and 88 cents for the shares for a total consideration of $714,440. As a result, he now holds 10.2 million shares, representing 10.8% of the shares outstanding.

The announcement comes after GoldSpot recently raised $10 million from a bought deal private placement of 12.5 million shares priced at 80 cent each. The underwriters were granted a green shoe option to purchase up to an additional 1.87 million shares, a move that would increase the offering proceeds to $11.5 million. That option remains open for 30 days after the offering closes, likely on June 1, 2021.

GoldSpot shares advanced on the news, rising 4.7% or $0.04 to 88 cents on volume of 269,030. The shares trade in a 52-week range of $1.00 and 12.5 cents.

GoldSpot is a technology company with a focus on mineral exploration. The company said net proceeds of the bought deal financing are earmarked for research and development, investment capital and general corporate purposes.

The company recently said it has been engaged by Nevada King Gold Corp. [NKG-TSXV] to assist in drill-targeting on the junior’s land holdings along the Battle Mountain Trend in Nevada.  Goldspot said it has a large, collaborative team of geoscientists and data scientists who are focused on maximizing the chances of discovery by extracting most of all available data using its proprietary machine-learning technology and geoscience expertise.

“Nevada King provides us with a unique opportunity to apply our technology on a large and strategic property package along the Battle Mountain Trend,’’ said GoldSpot President and CEO Denis Laviolette. “Past exploration efforts along this trend have yielded several very significant discoveries, and new insights into exploring for large targets at depth have emerged from this work,’’ he said.

“GoldSpot will work closely with the technical team at Nevada King to analyze geological, geochemical and geophysical data to provide smart targets for further drilling.’’

Under the agreement, GoldSpot will help to delineate drill-ready targets for high-grade gold/silver mineralization, as well as identify prospective areas regionally.

Goldspot has also been engaged by Granite Creek Copper Ltd. [GCX-TSXV] to apply its technology and geoscience expertise at Granite Creek’s Carmacks and Carmacks North project, which is located in the high-grade Minto copper district in the Canadian Yukon.

Under the deal, GoldSpot has pledged to work closely with Granite Creek’s technical team to analyze geological, geochemical and geophysical data cover the company’s advanced and early-stage targets, including targeting for the 2021 drilling campaign.

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