Photo by: Bloomberg
VANCOUVER (miningweekly.com) – The TSX-listed stock of Canada-focused explorer Auryn Resources on Monday jumped nearly 21% to C$3.67 apiece after it announced that Vancouver-based major Goldcorp will buy a stake in the company for C$35-million.
Auryn owns the 380 000 ha Committee Bay gold project, in Nunavut, and the Homestake Ridge gold project, in British Columbia, as well as several gold assets in Peru.
Goldcorp has been actively diversifying its grassroots exploration risk by proxy through existing junior vehicles, making a portfolio push towards what is the highest-risk part of the value creation equation. When the projects have been adequately derisked, Goldcorp marries them with its strong balance sheet, mine construction and operating experience and expertise.
Goldcorp will buy 9.5-million shares in Auryn at C$3.67 each, which will give the gold major a 12.5% interest in the explorer.
Auryn president and CEO Shawn Wallace commented that the Goldcorp investment meant that the company was fully funded to complete an extensive exploration programme in 2017.
The programme will include a planned 55 000 m of exploration drilling across six projects in Canada and Peru and expect to make several advances that could potentially contribute to the realisation of multiple major gold discoveries.