New property royalty for Euro

Toronto-based Euro-Nevada Mining (TSE) has acquired a 4% net smelter return on about 27,000 acres of the Alligator Ridge gold trend in Nevada.

The company said it paid US$3 million. A portion of the Alligator Ridge royalty lands are operated by USMX Inc.; the balance is the subject of an exploration agreement between USMX and Placer Dome.

Meanwhile, an associated company, Redstone Resources (TSE), said it will increase its interest in the Falconbridge Dominicana nickel operation in the Dominican Republic to 4% from 2.3% and raise $4.5 million in equity financing. To finance the acquisition and add to working capital, Redstone has agreed, subject to regulatory approval, to a private placement of 1.5 million shares at $3 per share. Franco-Nevada Mining (TSE) will subscribe for 500,000 shares to maintain its approximate 39% interest in Redstone.

Also, Franco-Nevada said it is selling about $29 million worth of new stock and special warrants. One million warrants at $28.75 each will be issued; each warrant may be traded for a common share and one-half warrant to purchase an additional share. One whole warrant may buy one share at $35 for three years.