Earlier this month, the company said that giant U.S. silver producer Hecla Mining (NYSE:HL) had subscribed for more shares of the company, allowing Hecla to maintain its stake in Canamex.
Under the terms of an ancillary rights agreement with Hecla 's Canadian subsidiary, Hecla subscribed for an additional 141,911 common shares of Canamex, at a price of 15 cents each, for total proceeds of about $21.3 million. Proceeds will be used for general corporate purposes.
Hecla has agreed that it will not sell the shares it has acquired for a period of one year following the closing of the equity financing between the two companies in November. Hecla owns roughly 15 per cent of Canamex.
Canamex Resources is focused on two gold exploration projects, the Aranka North gold project in Guyana, South America and the Bruner gold project in Nevada, USA.
The Bruner project is located in central Nevada, about 45 miles northwest of the Round Mountain Mine, which has produced over 10 million ounces of gold over a 30 year period. Historically, Bruner has produced around 100,000 ounces, at an average grade of 0.56 ounces per ton.
Earlier this year, drill results reported on the project yielded 118.11 metres of 4.08 grams per tonne (g/t) gold.
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