By purchasing 1.85 million Geddes shares through a private placement, Northgate has increased its stake in Geddes to 31%, representing 6.7 million common shares.
Warrants entitling Northgate to an additional 1.85 million Geddes shares would bring the Toronto company’s position up to about 37% on a fully diluted basis.
According to Northgate, the transaction was part of its plan to take an initial position in junior resource companies which it regards as promising.
Geddes is carrying out an underground exploration program at its Windy Craggy project in British Columbia where probable and possible reserves stand at 118 million tons of grade 1.9% copper, 0.08% cobalt and 0.2 g gold per tonne.
As reported (N.M., Oct 2/89), Geddes is preparing to examine the feasibility of operating a 20,000 tonne-per-day mining operation in rugged mountainous terrain.
An underground program which began in March, 1987, has shown the Windy Craggy to be one of the largest undeveloped copper deposits in Canada.
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