Mountain Lake closes $2m private placement with Sprott Asset Management

Halifax-based Mountain Lake Resources (CVE:MOA) announced Friday that it has completed its non-brokered private placement with Sprott Asset Management, worth just over $2.0 million.

The junior explorer placed 3.1 million common share units at a price of $0.65 each. The units consist of one common share and one half of a transferable share purchase warrant. Each whole warrant entitles the holder to purchase one additional share of the company at a price of $0.80 for a period of two years from the date of issue.

The proceeds of this financing will be used to fund Mountain Lake's exploration and development work on its projects in Newfoundland, Canada and for general working capital purposes, it said.

Mountain Lake and Marathon Gold (TSE:MOZ). own the 50/50 joint venture Valentine Lake property in central Newfoundland, where recent step out holes in the southwest area of the Leprechaun deposit returned wide, high-grade intervals of mineralization, including 3.70 grams per tonne (g/t) of gold over 9.0 metres, with 10.59 g/t gold over 3.0 metres and a whopping 32.24 g/t gold over 3.0 metres in hole VL-11-324.

The Valentine Lake project also includes, aside from the Leprechaun deposit, the Sprite Zone and the Valentine East Zone, located 700 metres and 13 kilometres along strike to the northeast of Leprechaun, respectively.

Mountain Lake also holds a 100% interest in the Glover Island gold exploration property and an option to earn a 100% interest in the Little River gold-antimony exploration property, as well as a 100% interest in the Bobby’s Pond base metals property.