U.S. REPORT — Imperial ups stake in Sterling with Cathedral

Several recent agreements set the stage for Imperial Metals (TSE) to increase its ownership of Cathedral Gold (TSE) and acquire a 10% direct interest in the producing Sterling gold mine in Nevada.

Imperial agreed to buy 2.2 million shares of Cathedral from the Geomex limited partnerships.

Imperial is already Cathedral’s major shareholder and the transaction will increase its interest to 56.2%. Cathedral’s key asset is its 52% owned interest in the Sterling mine where a 10,000-ft. drill program is under way aimed at increasing reserves.

Imperial agreed to buy the 10% interest in the Sterling mine from the Geomex partnerships which it once managed. The purchases are part of an overall agreement whereby Imperial will acquire all the partnership’s assets.