CAPITAL MARKETS

Golden Predator gains on Sprott-backed raising

Emerging Canadian gold miner Golden Predator has proposed a raising of up to C$6 million (US$4.6 million), saying precious metals investor Eric Sprott had agreed to increase his stake in the company.

Staff reporter
 Proceeds to advance Brewery Creek and 3 Aces (pictured) in Canada’s Yukon

Proceeds to advance Brewery Creek and 3 Aces (pictured) in Canada’s Yukon

Golden Predator last week said it had gained First Nation and territorial government approval to restart its mothballed Brewery Creek gold mine in Canada's Yukon.

It also has a bulk sampling programme underway at its 3 Aces gold project and has produced coins at its Yukon Mint.

Golden Predator said the proceeds from the placement would be applied to Brewery Creek, 3 Aces and general working capital.

It said it would offer up to 8 million charity flow-through shares at 45c, 4 million flow-through shares at 38c and 3 million shares at 32c, designed to raise up to $6.08 million.

"Eric Sprott has agreed to acquire 5 million shares sold through the offering, which would increase his total ownership to 13 million shares of the company," Golden Predator said.

It is aiming for a "timely resumption" at Brewery Creek, which was stopped by a previous owner in 2002 when the gold price fell below US$300 an ounce.

The company has optimisation studies underway to enhance a 2014 preliminary economic assessment for the project, which had outlined capex of $89.4 million for a nine-year mine producing 372,000oz.

Golden Predator shares shot to a one-year high on Friday, touching C50c and closing up 22% to 47c to capitalise it at $62.4 million (US$47.7 million).

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