Kinross buys 9.9% of Nevada-focused Eminent Gold

Kinross Gold (TSX: K) is taking a 9.9% equity stake in Eminent Gold (TSXV: EMNT) by partaking in a private placement arranged by the Nevada-focused gold junior.

Under the placement disclosed on Monday, Eminent Gold plans to issue 12.5 million units for 40¢ per unit to raise $5 million. Each unit contains one common share of the company plus one-half of a common share purchase warrant that has an exercise price of 70¢ per share.

Eminent Gold’s stock surged 5.8% to 36¢ apiece by market close, for a market capitalization of $21.4 million.

The funds are intended to support the Eminent’s activities in Nevada. The Canadian junior has three gold exploration projects covering more than 50 sq. km, with the the largest being Hot Springs Range project (HSRP).

Exploration opportunities

“The launch of this offering … strengthens the case for the exceptional potential of HSRP, showcasing multiple large-scale gold exploration opportunities in Nevada,” Paul Sun, CEO of Eminent Gold, said in a news release.

Eminent will use half of the financing proceeds ($2.5 million) for its near-term exploration plans, which include 1,000 metres of drilling at HSRP. Eminent’s team considers the Hot Springs Range project to be host to a prospective Carlin-type gold system, and to date, has identified two well-defined drill targets.

The company will also conduct 750 metres of drilling at the newly acquired Celts project, which it draws similarities to the multimillion-ounce Silicon mining complex (AngloGold Ashanti) located approximately 100 km southeast.