Canada invests $70m in Seymour Lake lithium project in Ontario
The lithium mine operated by Australia's Green Technology Metals could become the province's first lithium producer.
Barkerville Gold Mines (CVE: BGM) announced Tuesday a $15 million gold covering 12,500 ounces loan from a company (2176423 Ontario Limited) wholly-owned by Eric Sprott.
Barkerville will use the money to keep operating, apply for reinstatement on the TSX Venture Exchange and pay back a $1.5 million bridge loan from Sprott Resource Lending Partnership .
The lifeline extended by Sprott comes less than a week after the legendary precious metals investor sold some 6 million shares at $2.70 in his investment management company Sprott Inc (TSE:SII) according to Canadian Insider.
Trade in Vancouver-based Barkerville was suspended in August last year after problems with the technical report for its Cariboo project in central British Columbia.
At the end of June 2012 when Barkerville announced eye-watering resource estimates – 10.6 million ounces of contained gold at some of the best grades in the industry – for the Cow Mountain section, its stock exploded.
It did not take long for red flags to be raised about what would be one of the richest gold deposits in the world and the stock duly tanked.
Almost a year later the updated estimate shows a much more sober resource of 4.98 million indicated and inferred ounces.
When Barkerville’s shares start trading again it would be interesting to see if retail investors display the same kind of confidence in the company as Eric Sprott clearly does.
4 Comments
apple
Does Sprott know something ?
Ace
Sprott knows whats good for Sprott.
http://neer-do-well-hall-of-infamey.blogspot.ca/
Crasher
Ace knows what he’s talking about.
Tim
Sprott wants first right of refusal on financing should things go well on the resource estimate. I would guess that this loan gives him that, even if it is not in writing.
It also protects Spott’s investment into BGM – Barkerville