Royex group raises exploration funding

The Royex group of companies has arranged private placements of flow-through shares worth up to a total of $17.25 million for five associated companies which are all listed on the TSE: Royex Gold Mining, International Corona Resources, Lacana Mining, Mascot Gold Mines and Galveston Resources.

CMP 1988 Resource Partnership and Co., Ltd. has agreed to provide exploration funding of $2.5 million each to Royex, Corona, Lacana and Mascot, and $2.25 million to Galveston, in exchange for shares from each company. Also, the partnership will provide $1 million to each company in return for shares.

The five companies are part of a proposed amalgamation which would see the creation of a major, low-cost gold producer named Corona Corp. Shareholders of all five companies are scheduled to vote on the amalgamation plan June 3.