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On this blisteringly hot week in Vancouver (and many other places along the west coast), we bring you three resource-focused private placements that recently went free-trading with tremendous returns. Read on for a quick overview of each.
Emerita Resources Corp. (TSX-V: EMO) Term Sheet
- Type of financing: Non-brokered
- Gross proceeds: $3 million
- Number of units: 13.64 million
- Price per unit: $0.22
- Closing date: 02/23/21
- Yesterday's closing price (June 28): $1.32
- Gains: 500%
- Warrants: Half
- Strike Price: $0.30
- Expiry date: 02/23/23
- Net ROI w/ warrants ($100k investment): $731,818
Company breakdown:
- Zinc explorer with projects that owns the Plaza Norte project in Spain
- Financing above was entirely subscribed by billionaire mining investor Eric Sprott
- Just announced a $16 million bought deal
- Shares have been on the rise since late April after the company began preparing to drill the project's Iberia Belt West
Canadian Metals Inc. (CSE: CME) Term Sheet
- Type of financing: Non-brokered
- Gross proceeds: $2 million
- Number of units: 25.35 million
- Price per unit: $0.08
- Closing date: 02/22/21
- Yesterday's closing price (June 28): $0.30
- Gains: 275%
- Warrants: Half
- Strike Price: $0.15
- Expiry date: 02/22/23
- Net ROI w/ warrants ($100k investment): $368,750
Company breakdown:
- Junior multi-resource company
- Plans to spin out its Lac La Chesnaye property in Quebec
- Hasn't seen much news in 2021
- Shares began to rise in the lead-up to the closing of the private placement, have been up and down since
Gold Mountain Mining Corp. (TSX-V: GMTN)
- Type of financing: Bought deal
- Gross proceeds: $10 million
- Number of units: 10.31 million
- Price per unit: $0.97
- Closing date: 02/23/21
- Yesterday’s closing price (June 28): $2.14
- Gains: 306%
- Warrants: Half
- Strike Price: $1.25
- Expiry date: 02/23/24
- Net ROI w/ warrants ($100k investment): $166,49
Company breakdown:
- Mid-stage junior mining company that owns the Elk project in British Columbia
- Project has a total of 63 million ounces of gold measured, 589,000 ounces indicated, and 159,000 inferred based on a resource estimate released in May
- Just closed another $12 million bought deal
- Shares have been climbing all year, but jumped in particular after the company drilled 1.42 metres of 37 g/t Au in April
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