Thursday, September 1, 2011

Top investor (Eric Sprott) buys into Halifax firm

An influential Toronto firm has invested more than $2 million in a junior Halifax exploration company.

Mountain Lake Resources announced Tuesday that it has arranged a private placement with Sprott Asset Management LP of 3.1 million units at 65 cents each to raise $2,015,000.

The deal gives Sprott 3.1 million common shares of the company that is looking for gold in Newfoundland and Labrador, plus the ability to buy another 1.6 million Mountain Lake shares at 80 cents a piece within two years of its closing date.

"We plan to raise a fair bit of money between now and the end of the year for our program for next year, which will be fairly aggressive," Gary Woods, president and chief executive officer of Mountain Lake, said Wednesday from his Port Williams, Kings County, home.

Woods said he did the deal Monday directly with Eric Sprott, a famed investor and founder of Sprott Asset Management...

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