Goldcorp increases stake in Eastmain (July 10, 2006)

Vancouver — Goldcorp (G-T, GG-N) has boosted its interest in Eastmain Resources (ER-T, EANRF-O) by way of a $3.4-million private placement in the Quebec-focused junior.

Goldcorp will purchase 2 million units (each consisting of a share and half a warrant) at 70 apiece plus 2 million flow-through units (each composed of a flow-through share and half a flow-through warrant) at $1.00 apiece.

The placement will give Goldcorp a 9.95% stake (6.5 million shares) in Eastmain. Exercising of all warrants would boost the senior’s interest to about 12.6%. The duo has also extended its strategic alliance, under which Goldcorp will not sell any of its Eastmain shares for another five years.

Additionally, the companies have entered into a three-way joint-venture agreement with Azimut Exploration (AZM-V, AZMTF-O) for specific projects in the James Bay region of northwestern Quebec. At least $2 million of Goldcorp’s investment is to go to the joint venture’s lonore South project.

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