Wednesday, March 22, 2017

Eric Sprott Increases Its Stake In Metanor

Eric Sprott, a notable Canadian resource sector investor, took part in the last company's offering. Now he holds 81.3 million shares of Metanor and 51.3 million warrants (each warrant entitles to acquire one Metanor share for a price of $0.09 until March 2019).

If all warrants were exercised, Mr. Sprott would control 19.5% of the company. Eric Sprott started investing in Metanor last year. The current acquisition means that he has increased its stake in the company.

Interestingly, Mr. Market seems not to spot this event. Metanor shares are trading at C$0.06, which is the price at which the last offering was conducted.

I discussed Metanor two times at this blog: here and here.


  1. Eric Sprott, being the ultimate insider, why would he be increasing his stake in Metanor in the face of all negative news, such as delayed resource updates?

    SD, do you see any potential in Metanor given your previous reservations


  2. Zestil,
    Good question. Probably he knows something we don't know.

    You are right, the company still did not publish the updated Bachelor's mineral resources but maybe insiders know something about it.

    By the way, if Metanor is able to keep its costs at the level reported in 3Q and 4Q 2016, its market valuation looks impressive (one of the cheapest mining stocks)

    1. SD, thank you for your response and insight.

      Metanor is such a polarizing and difficult to follow junior miner. Even Sprott's most recent increasing of his ownership interest in MTO after disposing of MTO shares earlier this year is perplexing.

      For sure there are a lot of activities behind the scene. Time will tell

    2. Zestil,

      Eric Sprott, apart from being a long-term investor, sometimes is speculating in stocks. I guess he sold part of his earlier stake in Metanor to take part in the last offering