Ethos Gold Corp. (TSXV: ECC) announced on Monday it has arranged a non-brokered private placement offering of units priced at C$0.32 each to raise gross proceeds of C$2 million.
Canadian mining investor Eric Sprott, through a corporation beneficially owned by him, intends to subscribe for all of the units under the private placement.
Each unit comprises one common share of Ethos Gold and one-half of a common share purchase warrant. Each whole warrant entitles the holder to acquire an additional share at an exercise price of C$0.45 for 24 months after closing.
The company intends to use the gross proceeds for exploration activities on its Toogood project located on New World Island, Newfoundland, as well as working capital.
Ethos is currently advancing nine exploration projects throughout Canada including the Perk-Rocky copper-gold porphyry project in BC, where drilling is underway. Work is also planned for this summer on the other projects.
Shares of Ethos Gold jumped by 7.7% by 11:45 a.m. Toronto time following news of the Sprott financing. The junior miner has a market capitalization of C$52.6 million.