Orefinders secures Sprott investment

The historic Mirado pit. Credit: Orefinders Resources

Orefinders Resources (TSXV: ORX) announced Thursday that the company has closed the hard dollar portion of its non-brokered private placement for aggregate proceeds of C$1.49 million.

Upon closing of the offering, the Toronto-based junior issued 29.8 million units at a price of C$0.05 per unit, each comprising one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the company at a price of C$0.08 for a period of 24 months from the date of issuance.

Mining investor Eric Sprott acquired approximately 12.86 million of those units, giving him ownership of 8.07% of the issued and outstanding stock on a non-diluted basis and 11.64% on a partially diluted basis.

Orefinders is currently developing gold assets located in the Kirkland Lake District of Ontario’s Abitibi Greenstone Belt, including its wholly owned McGarry, Knight and Mirado projects.

Shares of Orefinders were down 8% at Thursday’s market open. The company has a market capitalization of C$7.1 million.