Royex boosts Lacana interest to about 44%

A recent subscription for 17,136 flow-through shares of Lacana Mining has increased Royex Gold Mining’s interest in that company to about 44% of the outstanding capital of Lacana.

Royex now owns about 10.8 million shares of Lacana, made up of about 4.8 million shares held directly and 6 million shares held indirectly through a wholly-owned subsidiary, 588982 Ontario Inc.

Royex subscribed for 10,447 of the Lacana shares on July 17 of this year and for 6,689 of the shares on Sept 18 under an agreement between the two companies reached in March. The agreement provides Lacana with exploration financing and allows Royex to acquire common shares of Lacana on the basis of one share for every $42.90 spent by Lacana under the Canadian Exploration Expense program.

Royex reports it intends to acquire additional shares of Lacana.

In other news, Royex announces it has increased its interest in Golden North Resource of Vancouver to about 17% through the acquisition of 394,307 flow-through common shares for about $1.2 million.

The Golden North shares were acquired under an agreement reached last year whereby Royex agreed to finance an exploration program in 1987 by acquiring 500,000 flow-through shares of Golden North at $3 per share.

In addition, Royex has advanced $211,134 for which 70,378 shares of Golden North are to be received; approximately $106,000 is still to be advanced for the shares remaining.

The acquisition boosts Royex’s beneficial shareholding in Golden North to 894,307 common shares. Royex also has the option to purchase 250,000 shares of Golden North at $2.25 per share until Jan 29, 1988.