I am not sure I understand what you mean by "source".
The company is issuing a set amout of warrants that may be exchanged for stock at a certian time at a pre-set price.
Sprott has committed to a large portion of these, the rest are available to anyone.
At the present price, small blocks of shares can simply be bought on the market at much less than the "exercise" price two years from now somewhare in the .70cent range. You can simply buy shares today for .53 cents.
The companies or high rollers who want a large position in the company can not buy this low volume share company without driving the price up beyond a price they want to pay. With this offering, you can get a large block of warrants (convertiable to shares in two years) for close to todays price, but to do that you risk loosing it all if the exersize price (.70's cent range) isn't met after two years.
Sprott will, with little doubt, make sure this stock is above .80cents come maturity date and bank thier new shares.
