Dundee increases interest in Black Hawk Mining

In a private transaction, DCC Equities, a wholly owned subsidiary of Dundee Bancorp (TSE), has acquired an additional 10.6 million common shares of Black Hawk Mining (TSE). It now holds a 36.9% interest.

The acquisition comes after Dundee sold to Black Hawk its 100% interest in the Keystone gold project in northern Manitoba.

In addition to the shares, DCC also received a 10% net profits interest in Black Hawk’s share of cash flow from Keystone plus varying royalty interests in Black Hawk’s three nickel properties.

The first gold bar from Keystone has been poured by project operator Cazador Explorations (VSE), which is earning a half interest in the property from Black Hawk. Keystone is expected to produce more than 40,000 oz. gold during its first year at about US$200 per oz.