McEwen increases White Knight holdings

Vancouver — Gold magnate Robert McEwen thinks he knows a good Knight when he sees one.

The chairman of Goldcorp (G-T) recently bought 1.6 million shares in White Knight Resources (WKR-V), at an average price of $1.26 apiece, to own almost 9.6 million shares or about 17.1% of the company (on a partially diluted basis).

McEwen says the acquisitions are for “investment purposes,” but the considerable stake in White Knight has left the market pondering his motives.

In June, McEwen acquired his initial position in the junior by purchasing 5.7 million shares, held by Goldcorp, at an average of 80 each. Shares in White Kight were trading at about 55 apiece in late May and are now hovering around $1.30.

White Knight recently announced that Teck Cominco (TEK-T) is beginning a drill program on the Fye Canyon gold project in the Cortez Hills area of Nevada. The major is earning up to a 60% interest in the property by funding US$4 million in exploration, making payments totalling US$750,000 by the end of 2008, and funding a feasibility study.

Following the completion of a geophysics program, Teck Cominco plans 3,000 metres of drilling targeting three areas of coincident induced-polarization highs and resistivity lows at gravity structural intersections occurring on the edges of a horst block.

White Knight expanded its land position in the Cortez trend earlier this summer, acquiring an additional 127 unpatented claims in the Gold Bar district to hold about 110 sq. km in the area.