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GT Gold announces $18 million investment by Newmont Goldcorp to explore BC's Golden Triangle

The deal is largely for exploration at GT Gold’s flagship Tatogga property in northwestern British Columbia in the highly popular Golden Triangle district, where the exploration company hit two significant discoveries in 2017 and 2018
tatogga project
GT Gold's flagship property is the Tatogga project in British Columbia

GT Gold Corp (CVE:GTT) shares rose Thursday after it announced that mining behemoth Newmont Goldcorp (NYSE:NEM) has taken a 9.9% stake in the junior exploration company in a nearly $18 million deal.

The investment is largely for exploration at GT Gold’s flagship Tatogga property in northwestern British Columbia in the highly popular Golden Triangle district. The explorer hit two significant discoveries in 2017 and 2018 at the Saddle prospect on the property.

Shares of Toronto-based GT Gold were up 12.5% at market open Thursday to hit $0.94 before receding $0.02 by midmorning.

READ: GGX Gold mulls acquisition opportunities in British Columbia’s Greenwood mining camp

The financing consists of a $17.6 million private placement of nearly 11.5 million flow-through shares priced at $1.53 per share. Under the terms of the deal, Newmont Goldcorp will acquire these shares as a back-end purchaser.

GT Gold and Newmont Goldcorp will also enter into an investor rights agreement, giving Newmont Goldcorp the right of first offer on Tatogga if GT Gold ever wants to divest its interest in the property. It also has the right increase its pro-rata ownership shares to 14.9%.

Newmont Goldcorp may appoint a nominee to sit on the exploration company’s board of directors, GT Gold said in a statement, and appoint half the members of a newly formed joint technical committee.

CEO welcomes investment

“We are very pleased to welcome Newmont Goldcorp as a strategic investor in GT Gold,” said Steve Burleton, GT Gold’s president and CEO. “Newmont Goldcorp’s investment is a significant milestone for GT Gold and represents a strong endorsement of our Tatogga property and recognizes the area’s appeal as a highly prospective gold district.”

Newmont Goldcorp will bring significant technical expertise which will help GT Gold accelerate the development of Saddle North and understanding of the geological potential of the company’s land package, according to Burleton.

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