Kinross Gold (TSX: K; NYSE: KGC) has acquired 9.9% of Wyoming-focused explorer Relevant Gold (TSXV: RGC; US-OTC: RGCCF) which is advancing the Golden Buffalo project.
The major spent $1.5 million for 5.1 million shares at 30¢ apiece and has the right to increase its ownership to 19.9%, Relevant said on Thursday. The transaction came with warrants to buy half the number of common shares at 35¢ per share.
Shares of Relevant Gold traded 6.7% higher by mid-Thursday in Toronto at 32¢ apiece, giving the Vancouver-based junior a market capitalization of $20.4 million.
“Kinross’s strategic investment represents a strong vote of confidence in our team’s Wyoming exploration vision and ability to execute in the field,” Relevant Gold CEO Rob Bergmann said in the release. “This investment marks a key milestone for Relevant, expanding our technical depth, strengthening our corporate structure and bolstering our treasury.”
Golden Buffalo
Golden Buffalo historically produced 500 oz. of gold from a 20-metre trench. Drilling in 2022 produced 83.8 grams gold per tonne over 1 metre. The exploration encountered shear-hosted gold mineralization in more than half of the holes. Rock chips also assayed up to 160 grams gold, the company said.
Relevant’s team says Golden Buffalo’s shear zone strike length was extended to about 800 metres, The site has mineralogy similar to that of the Abitibi region in Quebec, which holds some of the country’s largest gold mines, such as Canadian Malartic run by Agnico Eagle Mines (TSX: AEM; NYSE: AEM)
Kinross’ investment is separate from a private placement Relevant completed last month that raised $1.4 million. It sold 5.78 million units of one share and one-half warrant at 25¢ per unit.
Proceeds from both placements will help fund exploration on the company’s mineral properties. Relevant holds five projects spread across two gold camps comprising about 1,61.9 sq. km in west-central Wyoming.
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