McEwen further boosts White Knight holdings

Vancouver – Gold magnate Robert McEwen is raising his bet on White Knight Resources (WKR-V), purchasing further shares in the Nevada-focused explorer.

McEwen recently bought 1.6 million shares of White Knight on the market, at an average price of $1.26 apiece, to own almost 9.6 million shares or about 17% of the company on a partially diluted basis.

Citing the acquisitions as for “investment purposes”, the increasing position has left the market wondering the motive behind the GoldCorp (G-T) chairman’s significant interest.

Last June, McEwen acquired his core position in White Knight by purchasing 5.7 million shares, held by GoldCorp, at an average price of about 80. Shares in the junior have rallied from about 55 apiece in late-May to its recent trading level of $1.35.

White Knight also recently announced that Teck Cominco (TEK-T) is commencing a drill program on the Fye Canyon gold project in the Cortez Hills area of Nevada. The major is earning up to a 60% interest in the property by funding US$4 million in exploration, making payments of US$750,000 and funding the completion of a feasibility study.

Following the completion of a geophysics program, Teck Cominco plans about 3,000 metres of drilling primarily targeting three areas of coincident IP highs and resistivity lows at gravity structural intersections occurring on the edges of a horst block.