The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Arcus Development Group Inc. announced Oct. 24 that Goldcorp Inc. intends to participate in a non-brokered private placement which will give the major a 19.9 percent interest in the Yukon-focused gold explorer.
The financing will involve 12,610,916 flow-through units to be sold at C10 each and 1,789,084 regular units to be sold at C7.7 cents each. Each unit will consist of one Arcus common share and half a transferable warrant that allows the holder to purchase an Arcus common share at C20 cents for a period of 24 months from the closing of the offering.
Goldcorp is expected to be the ultimate holder of the flow-through units, which will result in the major gold producer holding roughly 19.9 percent of Arcus' issued and outstanding stock.
Proceeds from the sale of the flow-through units will be used for exploration at Arcus' Dan Man gold property on the north border of Goldcorp's recently acquired Coffee gold property in the Yukon.
"The Goldcorp investments support our belief in the exploration potential at the Dan Man property," said Arcus President and CEO Ian Talbot. "We look forward to working with the Goldcorp technical team as we develop the next exploration program for the Dan Man property."
On completion of the offering, Goldcorp will have the right to maintain its 19.9 percent in Arcus during future financings.
Goldcorp will also have the right to match non-equity financing and tolling arrangements related to future exploration or development on the Dan Man property.
In addition to Dan Man, Arcus owns three other properties in the Yukon's White Gold district - Touleary, Green Gulch and Shamrock.
-SHANE LASLEY
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