Mentioned:
A giant in the gold and silver business is buying up equity in a publicly traded exploration company in Canada. But, why?
What’s happening:
- Abitibi Metals (CSE: AMQ) is raising approximately $30M CAD in a new equity financing round
Why it matters:
- Precious metals producer Discovery Silver (TSX: DSV) is leading Abitibi Metals’ new funding round with a strategic investment
Going deeper:
- Abitibi Metals flagship project is the B26 Deposit which contains a large high grade resource of copper, gold, zinc and silver and is located in the historic Abitibi Greenstone Belt of Quebec
- Discovery Silver will own roughly a 9.9% equity stake in Abitibi Metals following the successful closing of the financing round
The intrigue:
- Billionaire mining financier Eric Sprott is one of the single largest shareholders of Discovery Silver alongside of Newmont Corporation (NYSE: NEM)
