GOLDCORP INC. (TSX: G, NYSE: GG) entered into an agreement with Probe Metals Inc. (OTCQB:PROBF), according to which Goldcorp will subscribe 4,400,000 common shares (the "Probe Metals Shares") of Probe Metals Inc. at a price of $ 0.66 per share for an aggregate subscription price of $2,904,000 (the "Private Placement").
Probe Metals Inc. is a Canadian precious metal exploration that is focused on the acquisition and growth of quality projects through effective exploration and development.
The 4,400,000 Probe Metals Shares represent approximately 12.6% of the current issued and outstanding Probe Metals Shares. The acquisition of the Probe Metals Shares is conditional on the closing of the acquisition of Adventure Gold Inc. by Probe Metals (the "Transaction") which has 80.197M shares outstanding, 36% owned by institutions, close to 9% owned by the management, no debt, core business mining titles in good standing, JV properties with gold producers in Timmins and in Val-d'Or and a new partnership with SOQUEM on the Detour Quebec project.
Goldcorp currently owns 6,177,846 Probe Metals Shares (17.7% of the current issued and outstanding Probe Metals Shares).
Following the completion of the Private Placement and the Transaction, Goldcorp will own an aggregate of 10,577,846 Probe Metals Shares, representing approximately 15% of the issued and outstanding Probe Metals Shares
The real target is Adventure Gold Inc.:
Adventure Gold Inc. ("AGE") is a mineral exploration company focused on discovering and developing high-quality gold deposits in the Abitibi region located in eastern Canada, - one of the richest gold mining areas in the world.
The company is mainly exploring close to existing gold mines where mining production infrastructure is already in place, which distinguishes it from other exploration companies.
Adventure Gold Inc's gold deposit properties: Val-d'Or East
The company owns 100% of the rights on its Val-d'Or East main project (90km²; 770,000 ounces of gold at 2.6 g/t Au in Inferred resources of which 332,000 ounces at 2.4 g/t Au in-pit resources - January 2013, 43-101 technical report).
The acquisition of the Probe Metals Shares by Goldcorp Inc. is conditional on the closing of the acquisition of Adventure Gold Inc. by Probe Metals, a well-positioned company to benefit its shareholders, which owns 100% of the rights on its Val-d'Or East main project.
It should be clarified that in the technical report Val-d'Or East there are no estimates of mineral reserves yet, but of mineral resources only. The mineral resources which are not mineral reserves do not have demonstrated economic viability (source: disclaimer of the NI 43-101 Technical Report).
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