Canadian Shield ups stake in Peruvian copper and gold properties

Canadian Shield Resources (CSP-V) has increased its stake in Gallant Minerals Peru – which holds four gold and copper-gold properties in Peru – to 90% from 66%, completing a deal signed with Gallant parent company Gallant Minerals in 2004.

Under the deal, Canadian Shield agreed to spend US$1.5 million on exploration over two years. Exploration has focused on the Humajala gold property, where the junior has completed nearly 4,000 metres of core and reverse-circulation drilling. Gallant Peru’s other properties are the Cerro Cori and Ccello-Ccello copper-gold projects and the Pucarana gold property.

“Finalizing the Gallant Peru transaction solidifies Canadian Shield’s interests in Peru,” said Canadian Shield president and CEO Lynda Bloom in a release. “Whereas previously, all new land acquisitions in southern Peru were transferred to Gallant Peru as part of the agreement, as of today, Canadian Shield can hold 100% of any new properties or business opportunities directly.”

The deal was completed with a payment to Gallant of US$175,000, 585,000 Canadian Shield common shares at a deemed price of 40 per share, and 585,000 warrants, each good for one Canadian Shield share at 40 per share for one year.

Shares in the company soared over 36% on Wednesday afternoon to 15, after the news was announced. Shares in the company have traded in a 52-week range of 9.5-23.5.