Exploits Discovery (CSE: NFLD) has seen further validation from major investors. The company this morning announced that it is conducting an $8.0 million non-brokered financing, with the financing being subscribed to exclusively by New Found Gold (TSXV: NFG) and Eric Sprott.
The financing will see each of New Found Gold and Eric Sprott subscribe to $4.0 million of the financing. The financing will see units of the company sold at a price of $0.60 per each, with each unit consisting of one common share and one common share purchase warrant. Each warrant is valid for a period of 24 months following the close of the financing at a price of $0.70 per common share.
Following the closing of the transaction, Eric Sprott will hold a 15.1% stake in the company on a non-diluted basis, and a 26.3% stake on a partially diluted basis, which is a result of him taking an initial 9.8% stake just two weeks ago. New Found Gold meanwhile will hold a 13.6% stake on a non-diluted basis, and 19.2% on a partially diluted basis.
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Proceeds from the financing are to be used for exploration purposes, the acquisition of additional properties, as well as marketing and general working capital.
“With Mr. Sprott doubling his investment in Exploits, and New Found Gold expanding on their existing cornerstone position, we are very pleased to have recognition of the exploration potential of our holdings in the Exploits Subzone in Newfoundland from these shareholders, and also their endorsement of the Company and its management team. With 5 drill permits in hand and a drill rig mobilizing shortly, Exploits is positioned for discovery and delivering value to our shareholders.”
Michael Collins, CEO of Exploits Discovery
Exploits Discovery last traded at $0.83 on the CSE.
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