VANCOUVER – Lupaka Gold Corp. (TSX:LPK) has bought the remaining 40 per cent interest in a subsidiary that holds the Crucero gold project in southern Peru for US$ 9.2 million in cash and stock.
Vancouver-based Lupaka said Friday that it acquired the minority stake in Minera Pacacorral S.A.C. held by five Peruvian individuals for US$ 4 million in cash and 5.2 million Lupaka shares with a deemed value of $ 1 apiece.
The company’s shares closed up eight cents at $ 1.04 Thursday on the Toronto Stock Exchange.
As part of the closing of the acquisition, Lupaka also made early payment of the final US$ 3-million instalment due July 15, 2012, to complete acquisition of its existing 60 per cent interest in Minera Pacacorral.
“The consolidation of 100 per cent ownership in the Crucero gold project is a major milestone for Lupaka Gold, and we are pleased to now provide 100 per cent of the exploration upside at Crucero to our shareholders,” president and CEO Eric Edwards said in a statement.
“By acquiring the remaining shares of Minera Pacacorral S.A.C., we were able to effectively purchase existing gold resource ounces for less than US$ 19 per ounce, based on 40 per cent of the number of uncapped ounces reported in last February’s NI 43-101 updated resource estimate.”
Prior to the completion of this transaction the company held an option to acquire the minority interest in Minera Pacacorral S.A.C. at any time up until July 2015.
“Instead of relying on our right to exercise the option in the future, we structured this early buyout with a combination of cash and shares that protects our cash position with minimal shareholder dilution,” Edwards said.
“We have also eliminated the risk that the option exercise price would increase due to continued exploration success and resource growth on the Crucero property or as a result of higher future gold prices.”
Local news from metronews.ca/vancouver
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