Gold Fields ups stake in Peru explorer

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Bullion major Gold Fields has invested another C$2.9-million in a Canadian company, which owns copper/gold/silver exploration assets in the Peruvian Andes.

Through its Gold Fields Nazca Holdings (GFNH) indirect subsidiary, Gold Fields purchased 5.81-million common shares in TSX-V-listed Chakana Copper at C$0.50 a share, giving it a 19.99% stake.

Prior to the private placement, GFNH held 16.8% of Chakana.

Gold Fields participated in a larger offering of Chakana shares, through which the exploration company raised C$7.09-million. Chakana could increase its private placement to a total of 24-million shares to raise C$12-million.

The junior intends to use the net proceeds of the private placement for the accelerated exploration and development of its Soledad project, in the Ancash region of Peru.

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CEO David Kelley said that Gold Fields’ decision to increase its equity position was a “great endorsement” for the project.

“Combined with our current cash on hand, we now have $9.3-million to cover the aggressive 26 000 m drill programme this year to test numerous additional targets and to publish a maiden resource on several of the breccia pipes.

“A second drill rig will arrive on the property later this week to initiate the in-fill drilling programme on the recent discoveries announced at Paloma East and Paloma West.

“Scout drilling continues at Huancarama with the other drill rig where 22 holes have been completed to date. Resource drilling will start at Huancarama once the scout drilling is completed.”

Gold Fields stated that it acquired the Chakana shares for investment purposes.

Source: Mining Weekly

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