Billionaire mining investor Eric Sprott has acquired 3 million common shares of Stratabound Minerals (TSXV: SB) at a price of 5 ? per share.
The acquisition was conducted through Jerritt Canyon Canada, which is controlled by Sprott. The privately held mid-tier gold producer operates the Jerritt Canyon processing plant and four gold mines located 80 km north of Elko, Nevada.
Through the acquisition, Sprott now owns 7 million common shares and 2 million warrants representing 15.47% of the company's common shares outstanding on an undiluted basis and 19.05% on a partially diluted basis
"We are very pleased with the continued support of Mr. Sprott through his control position with Jerritt Canyon Canada Ltd. as a significant investor in Stratabound," Kim Tyler, president and CEO of Stratabound Minerals, said in a press release.
Stratabound is exploring for gold at its flagship Golden Culvert project, 20 km northeast of Seabridge Gold's (TSX: SEA; NYSE: SA) 3 Aces and Abden Resources' (TSXV: ABN) Justin high-grade gold projects in the southeast Yukon Territory.
The Golden Culvert project contains measured and indicated resources of 5.74 million tonnes grading 6.56 grams gold per tonne for 1.2 million contained oz. gold. Inferred resources add 3.87 million tonnes grading 6.16 grams gold for 763,921 oz. gold.
The company also owns 100% of the Captain copper-cobalt-gold-silver deposit, located in the heart of the renowned Bathurst Mining Camp in northeast New Brunswick, and recently acquired the McIntyre Brook iron oxide-copper-gold project, also in New Brunswick.
"We see 2020 as a watershed year for us as we continue to build on our past successes developing our Yukon and New Brunswick gold and base metals projects as well as new acquisitions being contemplated going forward," Tyler said.
At press time in Toronto, Stratabound was trading at 21 ? per share and has around 45 million common shares outstanding for a $9.4-million market capitalization.