Newmont Goldcorp increases stake in Sirios to 19.9%

Exploration camp in the James Bay region of Québec. Credit: Sirios Resources

Sirios Resources (TSXV: SOI) has completed a non-brokered private placement for aggregate gross proceeds of C$1.48 million, the Québec-based gold miner announced Monday. The company issued 7.4 million units at C$0.20 per unit, a premium to the current share price of C$0.18.

Newmont Goldcorp — the world’s biggest gold mining company by output — increased its ownership from 15.9% up to 19.9% of the share capital of Sirios on a partially diluted basis by acquiring 5.41 million or 73% of the issued units.

Each unit comprises one common share of Sirios and one-half of a share purchase warrant. Each full warrant gives the holder the right to purchase one common share at an exercise price of C$0.30 per share for 18 months following the closing date.

Sirios intends to use the proceeds of the placement for exploration and infrastructure improvements on its Cheechoo gold project, which neighbours Newmont’s Éléonore gold mine located in the Eeyou Istchee James Bay region of Québec. The project is the most promising gold discovery made in company history, and it is one of few projects that are in resource estimation phase in the province.

Recently, Sirios reported encouraging metallurgical test results from the project site, showing that the type of gold mineralization at Cheechoo is easy to extract and has high recovery rates.

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