Eric Sprott makes large investment in silver

Canadian billionaire businessman Eric Sprott has made a large investment in advanced-stage explorer and developer MAG Silver.

TSX- and NYSE American-listed MAG announced this week that Sprott, through 2176423 Ontario, has taken up 4 528 302 common shares at C$13.25 a share in a nonbrokered private placement for $60-million in proceeds.

The placement is believed to be Sprott’s largest single investment in the silver space, MAG president and CEO George Paspalas said.

“Mr. Sprott has recognized this as an investment opportunity in a world-class silver project which is heading into cash flow in the near future.”

MAG intends to use the net proceeds of the offering to fund exploration and development of the Juanicipio project and for working capital and general corporate purposes. The project is being developed in a joint venture with London-listed Fresnillo, in Mexico.

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