Jan 9 Auryn Resources Inc said on
Monday that Goldcorp Inc, the world's third-largest gold
producer by market value, would buy a stake in the Canadian
exploration company for C$35 million ($26.49 million), sending
its shares up nearly 15 percent.
Auryn owns the Committee Bay gold project in Nunavut and the
Homestake Ridge gold project in British Columbia. It also owns
gold properties in Peru.
Large gold producers are increasingly relying on small
exploration companies to do the heavy lifting of searching for
new deposits and are taking stakes of 10 percent to 20 percent
Goldcorp will buy 9.5 million shares in Auryn at C$3.67
each. Shares of Auryn were up 45 Canadian cents, or nearly 15
percent, at C$3.50 on the Toronto Stock Exchange after the deal
was announced, while Goldcorp rose 6 Canadian cents to C$19.39.
($1 = 1.3215 Canadian dollars)
(Reporting by Nicole Mordant in Vancouver; Editing by Lisa Von