Sprott is set to hold 9.8% of Exploits on a non-diluted basis and 14.45% on a fully diluted basis.

Exploits said the funds would be used for exploration, acquisition of additional properties, marketing and general working capital.

The junior has seven projects with Newfoundland's Exploits Subzone and said the province was experiencing a modern-day gold rush.

It engaged GoldSpot Discoveries in October to deploy modern exploration techniques, which it said had led to New Found Gold's high-grade discovery at its nearby Queensway project.

New Found was a 9.9% shareholder of Exploits and Crest Resources held 23%, according to a February presentation.

"Mr Sprott's participation is a validation of our land, team and exploration strategy," president and CEO Michael Collins said yesterday.

"This funding will allow us to expand and aggressively chase both our current drill targets, and the development of new targets on the 200km-plus of deep-seated, gold-bearing structures on our Exploits Subzone claims."

Exploits said last week it was fully funded for its 12,000m spring and summer drilling programme and had received drill permits for four of five targets, the most recent being for Quinlan Vein at its Dog Bay project which had "high grade, visible gold samples at surface".

It had awarded a drilling contract to Majors Contracting earlier this month.

Exploits had closed a $4 million placement in March which was priced at 45c per unit and 49c per flow-through unit.

Exploits, formerly Mariner Resources, listed on the Canadian Securities Exchange in May 2019.

Its shares (CSE: NFLD) closed up 8.6% yesterday to 63c, capitalising it about $42 million (US$34 million).