Sprott Uses Kirkland Gains on Junior Investment Spree
ORENINC Market Highlights- Tuesday, July 30th 2019
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Legendary gold investor Eric Sprott has invested over C$139 million in Canadian junior private placements in June and July, almost single-handedly reigniting interest in the space as he redeployed some of the massive gains he made on Kirkland Lake stock.
Recent investments by Sprott include $4 million in Tudor Gold, $7.7 million in Discovery Metals, $33 million in Continental Gold, $2.6 million in Ely Gold Royalties, $2 million in Silver One Resources, $20 million in Jaguar Resources, $13 million in Americas Silver, $19.8 million in Pure Gold Mining, $9.2 million in Rio2, $7 million in Wallbridge Mining, $5 million in Aurion, $1.6 million in Golden Predator Mining, $1.4 million in Canarc Rresource, as well as small investments in Teuton Resources, Argentum Silver and Pure Nickel.
“Eric Sprott is an important part of the junior mining finance eco-system right now. He may end up single-handedly saving a number of future junior miners and should do extremely well in the process. This is support the market has never seen before from one private investor,” said Alex Black, CEO of Rio2 on Twitter.
“Eric believes the price of gold and silver is going substantially higher and he needs to position himself in companies absolutely ready to participate in this, which are high-cost producers and permitted marginal developers. When the gold price goes up, the margins of these companies go up significantly without them having to do anything,” said Rick Rule, CEO of Sprott Holdings.
Since May, 2176423 Ontario company owned by former Kirkland Lake chairman Sprott, has sold some 3.3 million shares of Kirkland stock for $168 million, reducing his position from 10% to 8%.