Gitennes Explorations (GIT-A) has arranged a $4.2-million private placement financing with Teck (TEK-T) to help fund exploration in Peru.
The transaction includes 1 million units of Gitennes at $4.20 each. A unit consists of one common share of Gitennes and one non-transferable share purchase warrant.
Alberta-listed Gitennes has gone from a 52-week low of 70 cents to a recent high of $6.10, largely on the strength of exploration progress at the Virgen
property in the Huamachuco region of north- central Peru.
A company spokesman says Gitennes was pleased by Teck’s decision to get involved. “It’s fairly significant when Teck jumps in and does business with other companies,” a spokesman said.
Work at Virgen has encountered strong gold mineralization along the northern and eastern extensions of the Rio Suro zone, the primary target on the property.
Surface chip channel sampling in the Rio Suro zone returned 2.92 grams gold over the first 130.4 metres. Those results partly overlap a previously reported 2.51 grams gold over the first 100 metres.
The results also included 92.8 metres (from 5.2 to 98 metres) grading 3.78 grams gold, and 19.9 metres (from 15.8 to 35.7 metres) of 7.24 grams gold.
The warrant will entitle the holder to buy one additional common Gitennes share at $5 per share any time within the next 12 months.
The Rio Suro zone is a mineralized quartzite breccia that has been traced in outcrop over a length of 400 metres and a width of 210 metres.
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