Having sold a portion of its Randsburg, Calif. gold claims to the U.S. exploration wing of Echo Bay Mines (TSE), New York-based DRX Inc. is contemplating what to do with the proceeds.
DRX is a holding company with a number of assets including a 20% stake in junior gold explorer McFinley Red Lake Mines (TSE). When the Echo Bay deal is complete, DRX will have an additional $4 million in its treasury with which to continue exploration in southern California, Arizona and Nevada.
Through wholly-owned subsidiary Westland Minerals Exploration, the company retains about 30,000 acres of land in the Randsburg area near Glamis Gold’s (TSE) Yellow Aster mine and will begin drilling on a number of targets outlined during surface sampling.
Chairman Robert Clarke said proceeds from selling the Randsburg claims to Echo Bay will provide additional liquidity for merger opportunities. Proven reserves on the claims now held by Echo Bay are said to be five million tons of grade 0.04 oz gold per ton.
While leaving management in place, Clarke said he wants DRX to act as a central financing source for a number of small companies which are brought into his portfolio.
According to Clarke, discussions have taken place regarding an increased stake or possible merger with McFinley but no decisions will be made until results of a bulk test at the Bateman Twp., project are released.
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