Resolute Mining Ltd. is buying a 15% stake in Orca Gold Inc.'s fully diluted capital for approximately A$22.5 million.
The company said May 28 it agreed to subscribe for 32,364,960 new Orca shares via a two-tranche placement at 67.5 Canadian cents per share.
Resolute will also receive 1,876,442 warrants at 67.5 cents apiece to maintain its 15% interest, after Orca completes its previously announced acquisition of Kinross Gold Corp.'s exploration assets in Ivory Coast.
The company will also secure a right to nominate a director to Orca's board after completion of the placement. The companies plan to jointly explore for gold deposits in Sudan, Ivory Coast and other African regions.
