Denver — Australia’s
Ranger will buy an additional 15 million shares in General Minerals at 28 per share, for proceeds of $4.2 million.
In November, Ranger bought 4.5 million shares at a similar price for a 19.8% interest in the company.
On closing, scheduled for Jan. 7, Ranger will hold 19.5 million of General Minerals’ 37.8 million outstanding shares, representing a 51.6% interest. It will also have the right to appoint two members to General Minerals’ board of directors.
Along with the $1.3 million from the first placement, the funds will be used to advance General Minerals’ properties in South America and China. In particular, the company will be able to complete drilling at the Productora and Escalones properties in Chile. Productora, a copper-iron-gold prospect south of Vallenar, hosts untested geophysical targets, whereas Escalones, southeast of Santiago, has potential for hosting porphyry mineralization.
The company also intends to resume metallurgical testing at the Vizcachitas copper property in Chile.
In Bolivia, it will explore for strike extensions of the sedimentary- hosted silver mineralization at the Atocha property. It is also looking to drill the Towerbeck gold prospect in northwestern China.
Ranger’s main asset is a 90% interest in the Damang gold mine in Ghana. The mine produced nearly 350,000 oz. gold in fiscal 2000. At the same time, the Perth-based firm posted a net profit of A$27.4 million.
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