Kinross Gold Corporation has just announced its subscription for 5,000,000 units of stock of the explorer Chapleau Resources Limited. As investors in this company it is good to see them actively pursue exploration companies who offer the future potential of increased reserves. Chapleau are engaged on drilling programmes in both Brazil and Peru.
Kinross Gold Corporation had this to say today’s news release:
Kinross announces Chapleau Resources Investment
Toronto, Ontario, July 3, 2008
-- Kinross Gold Corporation (“Kinross”) announced today
that it has subscribed for 5,000,000 units of Chapleau Resources Ltd. (“Chapleau”) pursuant to a non-brokered private placement. Each unit consists of one common share and one transferable share purchase warrant. Each warrant allows the holder to purchase one common share at an exercise price of CAD $0.70 during the first year from the date of issue and at an exercise price of CAD $1.10 during the second year from the date of issue.
After giving effect to the private placement and the exercise of the warrants, Kinross would hold approximately 10.16% of the issued and outstanding common shares. The subscription price for the units is CAD $0.50 per unit for an aggregate purchase price of CAD $2,500,000.
Kinross will have the right to participate in future financings of Chapleau to maintain a 5.35% equity interest in Chapleau, subject to approval by the TSX Venture Exchange and subject to maintaining a minimum 5% equity interest in Chapleau. The investment in Chapleau is part of Kinross’ strategy to increase its exposure to quality exploration opportunities by investing in junior resource companies. Chapleau is exploring high quality gold and copper projects in Brazil and Peru.
Chapleau Resources Limited trades on the Toronto Venture Exchange under the symbol CHI.V and has a market capitalisation of £34.30 million.
Have a sparkling day!
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