Chesapeake Gold Closes $4.4 Million Private Placement with Eric Sprott
Chesapeake Gold Closes $4.4 Million Private
Placement with Eric Sprott
Vancouver, British Columbia--(Newsfile Corp. - June 13, 2025) - Chesapeake Gold Corp. (TSXV: CKG)
(OTCQX: CHPGF) ("
Chesapeake
" or the "
Company
") is pleased to announce the completion of its
non-brokered private placement (the "
Private Placement
") with 2176423 Ontario Ltd., a corporation
beneficially owned by Eric Sprott, as the sole investor, as previously announced on June 9, 2025. The
Private Placement consisted of a total of 3,700,000 units (the "
Units
") at a price of $1.20 per Unit for
gross proceeds of $4,440,000.
Each Unit consists of one common share (a "
Share
") of the Company
and one-half common share purchase warrant (each whole warrant, a "
Warrant
").
Each Warrant is
exercisable for one Share of the Company at a price of $1.65 for a period of three years from the date of
issuance.
The net proceeds of the Private Placement will be used to advance the Company's proprietary oxidative
leach technology, ongoing exploration, including the Lucy project, and for general working capital.
Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him,
acquired 3,700,000 Units pursuant to the Private Placement, at $1.20 per Unit for total consideration of
$4,440,000. Prior to the Private Placement, Mr. Sprott beneficially owned or controlled 9,183,499
common shares of the Company representing approximately 13.4% of the outstanding common shares
of the Company on a non-diluted basis.
As a result of the Private Placement, Mr. Sprott now beneficially owns or controls 12,883,499 common
shares, and 1,850,000 warrants representing approximately 17.9% of the outstanding common shares
on a non-diluted basis and 19.9% of the outstanding common shares on a partially diluted basis
assuming exercise of such Warrants.
The securities are held for investment purposes. Mr. Sprott has a long-term view of the investment and
may acquire additional securities of the Company including on the open market or through private
acquisitions or sell securities of the Company including on the open market or through private
dispositions in the future depending on market conditions, reformulation of plans and/or other relevant
factors.
A copy of the early warning report with respect to the foregoing will appear on the Company's profile on
SEDAR+ at
www.sedarplus.ca
and may also be obtained by calling Mr. Sprott's office at (416) 945-
3294 (2176423 Ontario Ltd., 7 King Street East, Suite 1106, Toronto Ontario M5C 3C5).
The participation of Eric Sprott in the Private Placement constituted a "related party transaction", within
the meaning of TSX Venture Exchange ("
TSXV
") Policy 5.9 and Multilateral Instrument 61-101 ("
MI 61-
101
"). The Company has relied on the exemptions from the formal valuation and minority shareholder
approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of
the related party participation in the Private Placement as neither the fair market value (as determined
under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the
transaction, insofar as it involved the interested parties, exceeded 25% of the Company's market
capitalization (as determined under MI 61-101).
Further details will be included in the Company's
material change report to be filed. The material change report will not be filed more than 21 days prior to
closing of the Private Placement due to the timing of the announcement of the Private Placement and
closing occurring in less than 21 days.
The Shares and the Warrants issued in connection with the Private Placement are subject to a hold
period expiring on October 14, 2025.
The Private Placement is subject to final approval of the TSXV.
The securities described in this news release have not been, and will not be, registered under the United
States Securities Act of 1933, as amended (the "
U.S. Securities Act
"), or any applicable securities
laws of any state of the United States, and may not be offered or sold within the United States or to, or for
the account or benefit of, U.S. persons (as such term is defined in Regulation S under the U.S. Securities
Act) or persons in the United States unless registered under the U.S. Securities Act and any other
applicable
securities laws of the United States or an exemption from such registration requirements is
available. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of
these securities within any jurisdiction, including the United States.
For Further Information:
For more information on Chesapeake, its Metates and Lucy Projects or proprietary oxidative leach
technology, please visit our website at
www.chesapeakegold.com
or contact Jean-Paul Tsotsos at
or +1 778 731 1362.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
About Chesapeake
Chesapeake Gold Corp's flagship asset is the Metates Project ("
Metates
") located in Durango State,
Mexico. Metates hosts one of the largest undeveloped gold-silver deposits in the Americas
1
with over
16.77 million ounces of gold at 0.57 grams per tonne (g/t) and 423.2 million ounces of silver at 14.3 g/t
within 921.2 million tonnes in the Measured and Indicated Mineral Resource category and a further 2.13
million ounces of gold at 0.47 g/t and 59.0 million ounces of silver at 13.2 g/t within 139.5 million tonnes
in the Inferred Mineral Resource category. See the technical report titled "Metates Sulphide Heap Leach
Project Phase I" dated January 13, 2023, and news release dated February 22, 2023.
Forward-looking Statements
This news release contains "forward-looking information" which may include, but is not limited to,
statements with respect to the use of proceeds of the Private Placement. Forward-looking statements
are based on the opinions and estimates of management as of the date such statements are made and
are based on various assumptions.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be materially different from
any future results, performance or achievements expressed or implied by the forward-looking
statements. Such factors include, among others, the timing and content of work programs; results of
exploration activities; results from the Company's proprietary oxidative leach technology; general
business, economic, competitive, political and social uncertainties; changes in project parameters as
plans continue to be refined; accidents, labour disputes and other risks of the mining industry, and
political instability. Although the Company has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to differ from those anticipated,
estimated or intended. Forward-looking statements contained herein are made as of the date of this
news release and the Company disclaims any obligation to update any forward-looking statements,
whether as a result of new information, future events or results, except as may be required by applicable
securities laws. There can be no assurance that forward-looking statements will prove to be accurate as
actual results and future events could differ materially from those anticipated in such statements.
1
Mexico's biggest undeveloped gold deposits. Bnamericas. Published Tuesday, November 24, 2020.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/255547