Goldplay Exploration (GPLY.V) has now closed its previously announced private placement which was priced at C$0.20 (for a straight share, no warrants attached), thereby oversubscribing the placement by approximately half a million dollars to raise C$3M. The cash will help the company to unlock the value of the San Marcial project in Mexico, where the company plans to release an updated resource estimate next year, aiming to sharply increase the current silver-equivalent resource of 47 million ounces. As Goldplay is currently exploring a gold-rich zone of the mineralized system, the company will very likely publish a second, gold-focused resource rather than combining both zones into one consolidated resource.
It’s also very encouraging to see the continuous investment of CEO Fonseca who invested an additional C$140,000 in the placement (to boost his position to almost 6 million shares for a stake of 8.7%) and director Gino DeMichele who purchased 1.25M shares for C$250,000. In terms of getting skin in the game, Fonseca is probably the frontrunner on the entire TSX Venture Exchange. According to the Management Information Circular, his pre-tax salary was just C$85,000 in 2018, so he is essentially investing a multiple of his income back into the company.
And that’s not something you see every day.
Disclosure: The author has a long position in Goldplay Exploration. Goldplay is not a sponsor of the website, but the author organized a roadshow presentation for the company.