Goldcorp buys into Madison

Vancouver — Cash-rich Goldcorp (G-T) has taken a 6.9% equity stake in junior Madison Enterprises (MNP-V).

Through a private-placement, the Red Lake gold producer purchased 5 million units of Madison at 20 each. A unit holds one share and half a warrant. Each full warrant is exercisable into a share at 25 until Feb. 24, 2004. The shares are subject to a hold period that expires on June 24.

Madison will use the funds to explore the Lewis property in Lander Cty., Nev. Lewis is immediately adjacent to, and northwest of, Newmont Mining’s Phoenix-Fortitude property, which hosts 174 million tons grading 0.034 oz. per ton gold.

In February, Goldcorp took a 10.4% stake in American Bonanza Gold Mining (BZA-V), as well as a $1-million financing in Candente Resources (DNT-V).

Goldcorp garnished its interest in American Bonanza by being the largest buyer of a newly completed $4-million financing by the junior. The private placement comprised 18.3 million units priced at 22 each. A unit consists of one share and half a warrant. Each full warrant allows the holder to buy another share at 28 for a year.

The high-grade miner’s investment in Candente marks a first step towards forming a partnership on grassroots gold exploration in Newfoundland.

The non-brokered private placement consisted of 1.7 million units priced at 60 apiece. A unit consists of one share and half a warrant, and a whole warrant entitles Goldcorp to an additional share at 90 in the first year and at $1.10 in the second.