Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) announced today that Canadian Billionaire Eric Sprott has agreed to purchase 10,645,200 common shares of the company at a price of $3.10 Canadian dollars per share, representing a 2.9% discount to the five-day volume weighted average price ended June 21, 2019, for a total investment of approximately US$25 million in a non-brokered private placement.
The proceeds of the private placement will be used for general working capital and corporate purposes. Closing of the private placement is subject to the receipt of regulatory approvals, including the Toronto Stock Exchange, and is expected to close two business days following receipt of such approval.
Newmont Goldcorp Corporation has the right to maintain its pro rata ownership of the company pursuant to the investment agreement dated May 10, 2018 between Continental Gold and Newmont. Following receipt of notice of the private placement, Newmont will have five business days to exercise its right and maintain its pro rata ownership.