10:28 AM EDT, 07/14/2020 (MT Newswires) -- Karora Resources Inc. (KRR.TO) rose near 5.7% at last look to $0.56, just shy of 52-week highs of $0.58, after saying Tuesday that Eric Sprott agreed to increase his investment in the company by subscribing for an additional 26 million shares.

The company will issue a total of 36.5 million shares to Sprott and another institutional investor at $0.506 apiece, the same price that it had agreed in a share issuance transaction with Maverix Metals Inc. (MMX.TO).

Karora will use the proceeds to settle its previous agreement with Maverix by paying US$18 million in cash instead of shares. Subject to completion of the transactions, no Karora shares will be issued to Maverix.

Karora is focused on growing production and reducing costs at the Beta Hunt and Higginsville gold mines in Western Australia.

Price: 0.56, Change: +0.03, Percent Change: +5.66