Major Gold Producer Raises Stake to 13.8% After Exercising 3.78M Warrants

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Eminent Gold Corporation (EMNT:TSXV; EMGDF:OTCQB; 7AB:FSE) announced that Kinross Gold Corp. (K:TSX;  KGC:NYSE) exercised 3,787,118 common share purchase warrants of the company and now owns 11,361,355 common shares, representing approximately 13.8% of the issued and outstanding common shares on a non-diluted basis.

According to the company, the warrant exercise at CA$0.70 generated gross proceeds of CA$2,650,983. In connection with the exercise, Eminent issued an additional warrant for each warrant exercised. Each incentive warrant entitles the holder to acquire one additional common share at a price of CA$1.50 per share until May 2, 2027, consistent with previously announced terms.

Prior to the transaction, Kinross exercised control and direction over 7,574,237 common shares and 3,787,118 warrants, representing approximately 9.7% of Eminent's issued and outstanding common shares on a non-diluted basis and 13.8% on a partially diluted basis. Following completion of the warrant exercise and issuance of the incentive warrants, Kinross exercises control or direction over 11,361,355 common shares and 3,787,118 incentive warrants, representing approximately 13.8% of the issued and outstanding common shares on a non-diluted basis and 17.6% on a partially diluted basis.

The press release stated that the disclosure was issued in accordance with National Instrument 62 103 regarding the early warning reporting system. An early warning report filed by Kinross in connection with the transaction will be available on Eminent's SEDAR+ profile.

Kinross exercises control and direction over the common shares and incentive warrants for investment purposes and may increase or decrease its investment through market transactions, private placements, treasury issuances, or other transactions, including under the terms of the investor rights agreement between Kinross and Eminent dated April 2, 2025.

Dr. Dan McCoy, CEO of Eminent, commented in a company news release, "I would like to thank Kinross for their support. The proceeds from their warrant exercise will enable us to resume drilling at our 100% owned Hot Springs Range Project in the near term and to advance our Celts project toward drilling in the coming months."

McCoy added in the same release, "We are also appreciative of Kinross' continued engagement with our technical team, as their insights have been and continue to be valuable to Eminent. Their participation provides further validation of the new oxide, Carlin-style gold system we are in the early stages of identifying."

Gold Prices Strengthen Amid Rising Geopolitical Tensions

According to a March 2 update from FactSet, precious metals trading reflected shifting sentiment across global markets. The firm reported that "gold is higher for a second session while silver is lower, with conflict in the Middle East helping to drive the market towards safe haven investments." The report also noted that industrial metals moved in different directions during the same period, stating that "aluminum is higher on supply disruption concerns while copper and nickel are lower, as the market considers better than expected ISM manufacturing and manufacturing PMI data."

Leede Financial reported on March 2 that gold prices had strengthened amid geopolitical developments. The firm wrote that "gold climbed more than 2% toward CA$5,400 per ounce on Monday, reaching an over one-month high as safe-haven demand intensified following joint strikes by the U.S. and Israel on Iran over the weekend." The report added that the metal "recorded its seventh straight monthly gain in February, the longest streak since 1973, driven by heightened geopolitical tensions and U.S. President Trump's reshaping of international relations." Leede Financial also stated that "the rally has also been supported by strong central bank purchases and a broader investor move away from sovereign bonds and currencies."

Chen Lin of the What's Chen Buying? What's Chen Selling? newsletter commented on March 3 that geopolitical developments had affected broader commodity and financial markets. He wrote, "The US is attacking Iran! Gold and silver initially jumped on the news, but silver is having a big pullback." Lin added that "this morning the general market is having a big pullback and gold/silver followed," describing the market environment by stating, "It feels like a risk-off day." In discussing metals linked to defense and industrial demand, Lin also stated that "many critical metals are needed for the war industry and should be appreciated."

Exploration Programs and Drilling Plans

The company's Hot Springs Range Project is described as its flagship project and consists of 521 claims totaling more than 4,311 hectares in Nevada. Eminent completed the terms of a previous option agreement in April 2025 to acquire a 100% interest in the property through cumulative cash payments of US$136,140, share payments totaling 1,650,000 common shares, and a US$1,500,000 payment payable in cash or shares at the company's option.

In its investor presentation, the company outlined several exploration activities planned for 2026. During the second quarter of 2026, Eminent plans to accelerate work at the Hot Springs Range Project by announcing a reverse circulation drill program and budget, including the number of meters planned. The company plans to conduct reverse circulation drilling at the Otis area, including step-out drilling and testing of additional structures.

The company also plans to carry out a seismic survey at the Eden area to refine drill targets and conduct follow-up seismic work at the Otis area to define deeper structures. Core drilling is also planned at the Eden target to test key structures.

In the third quarter of 2026, the company plans to expand its exploration pipeline by planning and launching a maiden drilling program at the Celts Project. The Celts Project is described as a Silicon analogue and is located in Nevada within the Walker Lane trend.