Teck invests in Armenia-focused Fremont Gold
The mining major acquired a 6.89% stake
Teck Resources invested in Armenia-focused explorer Fremont Gold as part of a private placement, acquiring a 6.89% interest in the company.
The acquired units include 2 million warrants, which could increase Teck's stake to a maximum of 9.99% if exercised.
Overall, Fremont's private placement brought in over $2 million, with over 20 million units at C$0.10 per unit.
The funds will be used for exploration work at Fremont's Vardenis copper-gold project and the Urasar gold project, both located in the Tethyan belt in Armenia. As part of the exploration work, Fremont aims to undertake a minimum 22 line km IP survey at Vardenis and a maiden drill campaign at Urasar.
"We are very pleased to welcome Teck as an investor and believe their participation is an important endorsement of our two Armenian properties, our management team, and the opportunities that lie ahead," Fremont's chief executive Dennis Moore said.
Following the announcement, Fremont's share price went up 15%, closing at C$0.12. The explorer has a market cap of C$4.36 million.
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