Star investor takes a stake: Ramp Metals back on the upswing

You don’t see that very often: A company, in this case gold explorer Ramp Metals (WKN A407UW / TSXV RAMP), announces a financing and the share price shoots up by more than 23%! However, there are several reasons for this initial, extremely positive market reaction at Ramp.

About the figures: Ramp Metals announced yesterday (Wednesday) that it intends to raise 4.5 million Canadian dollars in a private placement. These will be distributed as follows:

• Up to 3,846,153 Charity Flow-Through Shares (the CFT Shares) at a price of CAD 0.78 per CFT Share. This would raise CAD 3 million for Ramp upon completion of the transaction. In addition
• Up to 2,727,272 common shares at a price of C$0.55 per common share, which is expected to raise an additional C$1.5 million for the company.

What is exciting here, and probably one of the reasons for the positive market reaction, is that the financing is being led by mining legend and billionaire Eric Sprott, who is likely to take on a not insignificant part of the placement via one of his investment vehicles. And you have to hand it to the “über investor” in the mining sector, he has once again picked a good time to get in!

Spectacular gold discovery: Ramp is ramping up again

In mid-June, Ramp Metals reported a truly monster drill intercept of 73.55 g/t gold and 19.50 g/t silver over 7.5 meters from its Rottenstone SW project, representing more than 550 gram-meters of gold alone – a top value.

This discovery presumably drew the attention not only of investors but also of Eric Sprott. The subsequent news that not all of the drill hole was mineralized to this extent, which was in all honesty not to be expected anyway, led to a significant, albeit temporary setback, which Sprott has now apparently used to negotiate the conditions for the placement. However, the Ramp stock had already started to recover.

In any case, CAD 4.5 million in addition to the remaining funds should enable Ramp Metals to quickly explore the Rottenstone SW project in more detail. After all, only a few holes have been drilled on the project. In addition to the discovery hole drilled in the Ranger target area, Ramp had also drilled holes in the Rogue target, which is about 3 kilometers from Ranger. Interestingly, they were actually drilling for nickel there too, but also encountered gold, although not bonanza grades like those discovered in hole Ranger-01.

We are excited to see what happens next and how and how quickly CEO Jordan Black can implement the further exploration plans that he recently detailed in the Goldinvest.de interview: