Ramp Metals (TSXV: RAMP) shares gained more than a quarter of their value on Wednesday after gold bug Eric Sprott invested in the Saskatchewan explorer.
Sprott is the lead investor in a $4.5-million stock offering due to close around Aug. 8, Ramp said in a release. It has the Rottenstone SW project that in June reported the Ranger-01 hole result of 7.5 metres of 73.55 grams gold and 19.5 grams silver starting at 227 metres downhole.
The shares, which the company has said are held 60% by management and directors, rose by 28% to 83¢ apiece by mid-Wednesday in Toronto. The shares are up nearly 340% since listing in March at 19¢. The company is valued at $27.5 million.
About 3.8 million shares are to be offered through Canada’s charity flow-through regime at a price of 78¢ apiece for gross proceeds of around $3 million, Ramp said. Another 2.7 million shares are to be priced 55¢ each to raise about $1.5 million, it said.
Rottenstone mine
CEO Jordan Black commented this month on how a second set of drill results at Rottenstone SW, which is on the same trend as the historic Rottenstone mine, hit mineralization 3 km away from the June Ranger result.
