Scottie high on drilling results, Sprott backing

Investor tips in C$2M after high-grade drilling results

Staff reporter
 Scottie’s VP of exploration checks the view before continuing surveying work in BC in 2019

Scottie’s VP of exploration checks the view before continuing surveying work in BC in 2019

Scottie reported highlights on Thursday including 34.78m at 7.44g/t gold and 1.29g/t silver from drilling the Blueberry vein at Bow, 2km north-east of the past-producing Scottie gold mine.

The company has the option to purchase 100% of Bow and fully owns the Scottie gold mine property.

The following day, Scottie said Sprott had invested C$2 million (US$1.5 million) in a non-brokered private placement at 20c per unit.

It gives him 11.5% of the company and up to 20.6% on a partially diluted basis if he were to exercise all his warrants.

Billionaire Sprott has stepped up investing in typically gold and silver-focused junior resource companies in the past year.

He invested more than $139 million (US$106.5 million) on 16 TSX Venture Exchange-listed companies between May and July 2019, according to Oreninc, after reducing his stake in Kirkland Lake Gold.

Scottie said the proceeds would be used for exploration at its British Columbia properties and for general working capital.

Scottie shares, which were trading below 10c a year ago, closed up 13% on Friday to 26c.

At that price, it is capitalised about $20 million (US$15.3 million).

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