Too bad Eric Sprott doesn't read Dino' would bought cheaper...
Newmarket Gold (NMI-T) April 4, '16 is pleased to report that Eric Sprott has agreed to purchase 10,000,000 common shares of Newmarket from Luxor Capital Partners LP (“Luxor”) and affiliates at a price of $2.25 per share for total consideration of $22.5 million. Together with Mr. Sprott’s prior shareholdings in Newmarket, Mr. Sprott will own 15,151,196 common shares in Newmarket representing an approximate 8.7% ownership in the Company. Luxor also granted Mr. Sprott a right of first refusal to purchase up to an additional 16,200,000 common shares of Newmarket that expires December 31, 2016.
Douglas Forster, President and Chief Executive Officer of Newmarket stated: “Mr. Sprott is a renowned and respected leader in the investment community and one of the world’s premiere gold and silver investors. Newmarket is very pleased to have Eric as a larger shareholder of the Company and we appreciate his continued support as we continue to focus on creating shareholder value from our three producing gold mines in Australia.”
Eric Sprott stated: “Newmarket has a strong management team and Board of Directors. I am impressed with the progress that Newmarket has made with record gold production in 2015, the very positive outlook for production growth and operating cost reductions and its strong balance sheet with essentially no debt. I look forward to being a supportive shareholder and participating in the growth of the Company.”
Luxor and affiliates continue to hold 50,090,697 common shares of Newmarket representing an approximate 28.7% ownership in the Company with Luxor’s shareholdings being locked-up and restricted from trading until July 10, 2016. Newmarket has approximately 174.7 million shares issued and outstanding.
ON BEHALF OF THE BOARD
“Douglas Forster”
Douglas Forster, M.Sc., P.Geo.
President & Chief Executive Officer
About Newmarket Gold Inc.
Newmarket Gold is a Canadian-listed gold mining and exploration company with three 100% owned operating mines across Australia. The Company is focused on creating substantial shareholder value by maintaining a strong foundation of quality gold production, over 200,000 ounces annually, generating operating cash flow and maintaining a large resource base as it executes a clearly defined gold asset consolidation strategy. The Company is focused on sustainable operating performance, a disciplined approach to growth, and building gold reserves and resources while maintaining the high standards that the Newmarket Gold core values represent.
About Eric Sprott
After earning his designation as a chartered accountant, Mr. Sprott entered the investment industry as a research analyst at Merrill Lynch and Company Inc. In 1981, he founded Sprott Securities (now Cormark Securities Inc.) which today is one of Canada’s largest independently owned institutional brokerage firms. After establishing Sprott Asset Management LP in December 2001 as a separate entity, Mr. Sprott divested his entire ownership of Sprott Securities to its employees. Mr. Sprott recently resigned from his position as the lead portfolio manager at Sprott Asset Management (a Toronto-based alternative asset manager) and remains Chair of the board of Sprott Inc. Sprott Inc. is a leading alternative asset manager with a proud history of delivering outstanding long-term performance to its clients through a diverse range of innovative products and investments strategies which includes Sprott Asset Management LP.
For further information, please contact:
Laura Lepore
Director, Investor Relations
Newmarket Gold, Inc.
416.847.1847
llepore@newmarketgoldinc.com
Ryan King
VP, Corporate Communications
604.559.8040
rking@newmarketgoldinc.com |
