Goldcorp finances junior explorers

Vancouver With only one operation under its belt, Goldcorp (G-T) has entered 2003 with an eye on investing in promising junior explorers. In its latest financing move, the cash-rich company has picked up an 8.7% stake in Planet Exploration (PXI-V).

Goldcorp acquired the interest by purchasing a $500,000 private placement in the junior. The company picked up 1 million units priced at $0.50 each. A unit holds one share and one warrant, which is exercisable at $0.60 for one year. Assuming Goldcorp exercises all of its warrants, its stake in Planet would jump to 16.1%.

Planet’s main asset is the Sidace Lake property in Ontario’s prolific Red Lake region. The junior recently completed a fifth round of drilling over the project. The 1,000 metre program tested the up dip and west strike extensions of the mineralization cut in hole RL-02-04 (2.14 grams gold per tonne over 61.7 metres). Three of the four holes intersected the favourable quartz sericite schist zone with the best results being 1.25 grams gold per tonne over 122.7 metres in hole RL-02-14. This section included a higher-grade section running 6.01 grams gold over 4.7 metres. Mineralization is hosted in grey quartz veinlets with trace to 5% pyrite, minor arsenopyrite and local stibnite.

Planet has earned a 50% stake in the property and has paid joint venture partner Madalena Ventures $100,000 for an option to acquire the remaining 50%. Under the deal, Planet must issue Madalena 3.5 million shares by April 15. At the end of the day Madalena would hold a 23.8% interest in Planet. An unrelated third party holds a 1-% net smelter royalty over the Red Lake ground.

Goldcorp has been actively investing in juniors this year. In Feb., the company took a 6.9% equity stake in junior Madison Enterprises (MNP-V), a 10.4% stake in American Bonanza Gold Mining (BZA-V) and a $1-million financing in Candente Resources (DNT-V) (TNM March 10-16, 2003).