Tuesday, July 26, 2016

Eric Sprott Increases His Stake In Excellon Resources

Excellon announced today that Eric Sprott, a notable Canadian resource investor, acquired 5.83 million units at a price of C$1.15 per unit.


Each unit comprises of one common share and one half of one Share purchase warrant.
Together with previously acquired units, Mr. Sprott now owns and controls 14.43 million common shares and 6.25 million purchase warrants representing around 25.5% of the outstanding shares on partially - diluted basis. 

According to the company, it intends to use this cash to:


"...fund accelerated exploration at the Platosa Project, for capital expenditures at the Platosa Mine and Miguel Auza Mill, for working capital expenses and for general corporate purposes"
 
To remind my readers, in April Mr. Sprott acquired his first tranche of Excellon shares paying C$0.45 per share. Now, after a dramatic increase in Excellon share prices (look at the chart below), he still thinks these shares offer value.
 
 
 
                                             source: www.stockcharts.com 
 
 

6 comments:

  1. SD Do you have an opinion on KNT.V?
    Thanks

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  2. Harry,
    It is interesting why Barrick sold Kainantu after having invested huge amounts of money. It stinks a little bit.

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  3. Not sure what you mean by "It stinks a little bit." KNT bought the mine for pennies on the dollar. KNT seems like a buy on a pull back after recent run up. Your thoughts? Thanks.

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  4. Harry,
    I was trying to find out why Barrick sold Kainantu in 2012 (or something like that). I did not find too many details, only these:
    - Kainantu was unprofitable
    - there were some issues with locals (a few of them died due to heavy rains or the like)

    Maybe it is nothing but I prefer to stay away from something I do not understand (but my research was not too deep)

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  5. Thanks for all your articles and comments. Some well known investors in the mining world have recently bought in. I am hoping for a pull back.

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  6. Surely they know something I do not know...

    ReplyDelete