Major funds search for PGMs

Teck (TEK-T) has completed a $250,000 flow-through financing in each of East West Resource (EWR-V) and Canadian Golden Dragon Resources (CGG-V) and reached a deal with the pair to explore eight prospective platinum group metal (PGM) properties in northern Ontario.

Teck can earn an initial 51% interest in all of the properties by spending a total of $8.8 million on exploration over five years. The amount spent on any particular claim group varies from $800,000 to $2 million, depending on the size of the property. The property package does not include the Seagull property, a joint venture with Avalon Ventures (avl-v) that is continuing to be explored jointly by East West and Canadian Golden Dragon. Teck can boost its interest to 60% in any individual property by completing a final feasibility study, and to 70% by arranging production financing for all three parties.

In April, the major subscribed to flow-through placements of 1 million units in each of East West and Canadian Golden Dragon at 25 per unit. Each generated proceeds of $250,000. These funds will be used, in part, to explore the Seagull project and other areas of the Nipigon Plate, near Thunder Bay.

East West holds 26 prospective PGM properties in the Thunder Bay and Timmins areas of northern Ontario. The junior has joint-ventured 19 of these properties with nine other companies.