Q: I have one more question about Jaguar Mining. Upon rereading the press release about the equity raise it was called a "life private placement". Can you explain what that is?
5i Research Answer:
A private placement is simply an equity financing that does not immediately come with a full prospectus (which is a legal document outlining all the information and risks of buying the shares offered). Because of this, there is typically a four-month hold on the stocks sold, and buyers cannot sell their stock for this period of time, or, until a prospectus is issued. In JAG's case, however, only the shares issued to Eric Sprott, as controlling shareholder, are subject to a hold period. Eric owns 49% of the company now.