Giant/Pamour deal exploration bets to Pamorex Mnrls

Giant Yellowknife Mines (TSE) and Pamour Inc. (TSE) will increase their holdings in Toronto-based Pamorex Minerals (TSE) after selling a number of exploration properties to the company. Formerly Consolidated CSA Minerals, Pamorex operates as the exploration wing of the Pamour group of companies.

By issuing 1.76 million common shares at 85 cents per share in a private placement with Giant Yellowknife, Pamorex will also raise $1.5 million for general corporate purposes. Pamorex will pay $1.28 million for the Pamour properties, $944,000 for the Giant Yellowknife properties and $888,500 for Giant Yellowknife’s 100% interest in Artic Precious Metals Inc.

Under the agreement, Giant Yellowknife and Pamour retain the right of first refusal if Pamorex decides to sell the properties in the event that they are brought to a production stage.

Pamour currently holds about 5.4 million Pamorex shares representing a 37.3% interest and rights to acquire an addtional 666,667 at $3 each under existing flow-through share agreements.

Pamour will receive an additional 1.51 million Pamorex shares at 85 cents per share for the exploration properties. As a result, Pamour will increase its interest in the latter company to 7.6 million shares or 36.8% on a fully-diluted basis.

Giant Yellowknife increases its interest in Pamorex to 3.9 million or 18.9% by acquiring 1.7 million Pamorex shares at 85 cents from the private placement, 2.15 million shares at 85 cents in the property and Artic Precious Metals sale.