Chesapeake Gold Announces $4.4 Million Non-Brokered Private Placement with Eric Sprott

Core Points - Chesapeake Gold Corp. announced a non-brokered private placement of 3,700,000 units at a price of $1.20 per unit, raising gross proceeds of $4,440,000 [1] - Each unit consists of one common share and one-half common share purchase warrant, with each whole warrant exercisable at $1.65 for three years [1] - Eric Sprott, through 2176423 Ontario Ltd., is the sole subscriber for this private placement [1] Company Ownership - After the private placement, Eric Sprott will own 12,883,499 common shares and 1,850,000 warrants, representing approximately 17.9% of the outstanding common shares on a non-diluted basis and 19.9% on a partially diluted basis [2] Management Commentary - The Interim CEO expressed satisfaction with Eric Sprott's increased investment, indicating it reflects confidence in the company's strategic objectives [3] - The financing will support the advancement of proprietary leach technology and ongoing exploration, including the Lucy project [3] Use of Proceeds - Net proceeds from the private placement will be allocated to advancing the company's proprietary oxidative leach technology, ongoing exploration, and general working capital [3] Regulatory Approval - The private placement is subject to necessary approvals, including from the TSX Venture Exchange, and the units will be subject to a hold period under Canadian securities laws [4] Related Party Transaction - The private placement is classified as a related party transaction, and the company intends to rely on exemptions from formal valuation and minority shareholder approval requirements [6] Company Overview - Chesapeake Gold Corp's flagship asset is the Metates Project in Durango State, Mexico, which hosts over 16.77 million ounces of gold and 423.2 million ounces of silver in the Measured and Indicated Mineral Resource category [8]