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Update: Goldrock Mines Raises Cash At A 92% Premium

Goldrock Mines (MFMNF) has announced it has signed an agreement with Orion Resource Partners, whereby the latter will invest $5M in Goldrock at a substantial premium to the company's last trading price. Orion will acquire just over 12.5M shares at a price of C$0.50 ($0.375). This is a 92% premium to yesterday's trading price.

It's quite good to see Orion make a substantial investment in Goldrock, and it will own roughly 12% of the company's share capital once this transaction closes. You might think Orion must be completely crazy to pay a 92% premium to get a stake in Goldrock, but there are other motives in play as well. Orion doesn't just make equity investments in companies, its mandate is also to acquire gold and silver royalties and streams on existing projects. As such, this move to pay through the nose for Goldrock shares could be seen as a gesture… Read More …