Rayrock buys 20% of New Canamin

Intrigued by New Canamin Resources’ (VSE) recently acquired copper porphyry plays in central British Columbia, Rayrock Yellowknife Resources (TSE) has purchased, through a private placement, 600,000 shares (20.6%) of the junior at 60 cents per share.

The British Columbia properties include Nanika, in which New Canamin is earning a 50% interest from Placer Dome (TSE) and Poplar, in which Canamin has the right to earn a 100% interest (T.N.M., Sept. 16/91). Last tested for copper and molybdenum in the late 1960s, the properties have yielded a “fair gold credit” in recent assays, said David Hutton, vice-president of exploration for Rayrock. He believes there is potential for economic gold mineralization and/or reserve expansion at both. Prior to the transaction, Rayrock was neither a shareholder or insider of the Vancouver-based junior. The senior company says it has no current plans to increase its investment.