OTIS target at the Hot Springs Range Project in Nevada. Credit: Eminent Gold
Kinross Gold (TSX: K) is taking a 9.9% equity stake in Eminent Gold (TSXV: EMNT) by partaking in a private placement arranged by the Nevada-focused gold junior on Monday.
Under the placement, Eminent Gold plans to issue 12.5 million units for C$0.40 per unit to raise C$5 million. Each unit contains one common share of the company plus one-half of a common share purchase warrant that has an exercise price of C$0.70 per share.
Eminent Gold’s stock surged 5.8% to $0.36 apiece by market close, for a market capitalization of C$21.4 million.
The funds are intended to support the Eminent’s ongoing activities in Nevada. The Canadian junior currently has three gold exploration projects covering more than 50 sq. km, with the the largest being Hot Springs Range project (HSRP).
The launch of this offering … strengthens the case…
