Interested in the Courville gold project northeast of Val d’Or, Que., Placer Dome (TSE) has agreed to become a major shareholder in Cache Explorations (ME). Cache is earning an interest in the property from Parquet Resources (ME). Under the agreement, Placer Dome has the option to purchase shares of Cache through successive private placements.
On signing the deal, Placer will subscribe to a private placement of 746,296 shares at 67 cents per share. Over a period of three years, Placer will have the opportunity to purchase an additional 2.8 million at market price plus 15%. The gold producer also has the right to purchase 1.04 million shares currently held by Corpomin Management and a director, at market price plus 10%, by Dec. 31, 1993.
Cache is one of five juniors, including Nova-Cogesco Resources (TSE), MSV Resources (ME) and VSM Exploration (TSE), managed by privately owned Corpomin. The junior currently has about 2.7 million shares outstanding.
The bulk of the proceeds from the deal will be used to develop the Courville project, where a gold- bearing zone has been traced for 1,000 ft. along strike and to a depth of 500 ft.
As long as it provides the funding, Placer Dome will act as project manager at Courville. Cache can earn a 50% interest in the property by spending $3 million on exploration over a 3-year period and making cash payments of $300,000.
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