Max Resource Corp (TSXV: MXR) has seen famed mining financier Eric Sprott take down $1.92 million in their latest placement, which closed on an oversubscribed basis this morning. The financing saw a total of $6.5 million raised in gross proceeds at a price per unit of $0.24.
Each unit sold under the financing consisted of one common share and one half warrant. Each whole warrant contains an exercise price of $0.40, with an expiry of 12 months from the date of issue which is also subject to an acceleration clause. Should the company see its equity price close above $0.80 for a period of ten consecutive trading days, the company can accelerate the expiry of the shares upon providing thirty days notice.
Eric Sprott has taken down a total of 8,000,000 units of the financing through his numbered company. Gross proceeds from his purchase total out at $1.92 million, resulting in him owning 9.6% of the outstanding shares, or 13.7% on a partially diluted basis assuming the exercise of the warrants.
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Proceeds from the financing are to be used for exploration as well as general working capital.
Max Resource Corp last traded at $0.29 on the TSX Venture.
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