Madison ups Mt. Kare stake

Madison Enterprises (MNP-V) has acquired an additional 25% indirect interest in the Mt. Kare gold-silver project from Australian-based Carpenter Pacific Resources.

Under the deal, Madison will gain all the shares of two Carpenter Pacific subsidiaries, Frontier Mining & Exploration and Oakland Pty., in return for 10 million shares and 3.1 million 3-year share purchase options. The options are exercisable at $1 for two years and $1.50 in the third year. As a result, Madison will hold a 90% interest in the property, with the remainder held by Kare-Puga Development, which represents Mt. Kare landowners.

The deposit has a resource of about 20.4 million tonnes grading 5.6 grams gold and 28.7 grams silver per tonne.

The company recently closed a private placement. Proceeds of $1.6 million, will be used to explore Mt. Kare.