In addition to buying an interest in Britannia Gold (TSE), Toronto-listed Goldcorp will acquire the right to joint-venture ground held by Britannia’s subsidiary.
Goldcorp will buy 812,500 Britannia units at 80 cents each. A unit consists of one common share and one half purchase warrant, with one full warrant entitling the holder to buy an additional common share at a price of $1 in one year and $1.10 in two years.
As well, Goldcorp can joint-venture any prospects held or acquired by Britannia’s 50%-owned Peruvian subsidiary for a period of 24 months. The agreement does not include joint-venturing of the Las Lomas and certain other Peruvian prospects.
Should Goldcorp wish to acquire a 51% interest in any prospect, the company must incur exploration and development expenses equivalent to all amounts expended on any such prospect by Britannia’s subsidiary.
In addition, if Britannia receives an offer during the time of the agreement, Goldcorp must make an election with respect to the property within 15 days of being notified.
Goldcorp has known gold reserves in excess of 3.7 million oz., as well as industrial mineral reserves totalling more than 30 years worth of mine life at its sodium sulphate and lime operations.
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