Sprott invests in Palladium One as metal price hits record high
Palladium One Mining (TSXV: PDM) announced Tuesday that it will undertake a private placement offering to raise up to C$3.2 million, which will be used for exploration activities on its palladium-dominant LK project in central Finland and its Tyko sulphide nickel project in Ontario, Canada.
The offering comprises up to 53 million units of Palladium One at C$0.06 a unit, with an over-allotment allocation of up to 15% of the total offering. Canadian mining investor Eric Sprott is expected to participate in the offering in an amount equivalent to providing a 19.99%, non-diluted ownership interest in the company’s issued and outstanding common shares.
Shares of Palladium One jumped more than 14% at market open, at one point trading at a two-month high of C$0.085. The company has a market capitalization of approximately C$3.1 million.
The financing announcement comes as price of palladium metal reached a record high of $1,808/oz a day earlier, due to persistent supply deficits and as a direct consequence of higher demand from stricter auto emission standards and the migration away from diesel-powered vehicles.
According to Palladium One president and CEO Derrick Weyrauch, the company is now “well-positioned as a strategic metal provider for cleaner air.”
“The proceeds will allow us to focus on increasing our existing palladium mineral resources at our LK project through new discoveries and step-out and infill drilling,” he added.
After closing the financing, the plan is to conduct high-resolution IP geophysics and then initiate a 5,000-metre diamond drill program as soon as practical. Planning is underway, the company says.