Agoracom Blog

American Creek Resources $ – Gold, Silver Investing Legend Eric Sprott on Junior Mining Spree $ $SA $ $ $ $ $ $ $$ $

Posted by AGORACOM at 10:00 AM on Wednesday, July 31st, 2019

Sponsor: American Creek Resources (TSX-V: AMK) American Creek owns a 20% Carried Interest to Production at the Treaty Creek Project in the Golden Triangle. 2019’s first hole averaged of 0.683 g/t Au over 780m in a vertical intercept. The Treaty Creek property is located in the same hydrothermal system as the Pretivm and Seabridge’s KSM deposits.

  • Sprott sold 3.3 million shares of Kirkland stock for C$168m
  • Deployed C$139m on 16 gold and silver explorers since May
  • Includes $4M in Tudor Gold and most recently 1$M in American Creek for Treaty Creek Exposure at Goldstorm
Eric Sprott is responsible for nearly a quarter of the money flowing into junior mining since May, says Oreninc. Image from archives.

The gold price has now been camped out above $1,400 an ounce for a month, and silver has finally come alive above $16 per ounce, but legendary mining financier Eric Sprott had already kicked off a major junior investment spree when the metals were significantly cheaper than they are today.

The Canadian billionaire investor – also a pioneer in the gold-backed ETF industry – has splashed more than C$139 million on 16 gold and silver explorers (and some nickel on the side) since May, according to junior mining finance authority Oreninc. $127m of the total found its way to Canada-domiciled companies.

Sprott uses a company called 2176423 Ontario to play the space and was able to flash the cash thanks in part to a divestment from Kirkland Lake Gold, (TSX:KL) (NYSE:KL) where he was chairman until recently.

Sprott, has sold some 3.3 million shares of Kirkland stock for C$168 million, reducing his position from 10% to 8% according to Oreninc data. Kirkland Lake has been on a roll, doubling its share price in under a year.

Kirkland Lake output could reach 1 million ounces for the first time this year, driven by record production at its flagship Fosterville mine in Australia. Fosterville is the lowest cost gold mine in the world, extracting the metal for a mere $313 an ounce all-in this year.

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