Development banks seek to revive world’s biggest power project
The planned Grand Inga hydropower complex in the DRC has been stalled for decades.
Despite capital markets retreating from mineral exploration plays and gold prices dropping 13% in April, Teck Resources Ltd. (TSX: TCK) is bucking a trend by sinking $10 million into a local gold exploration company with prospects in West Africa.
Teck is increasing its holdings in True Gold with a purchase of 30,303,030 common shares at $0.33 per share.
Teck already holds 1,750,000 shares in the company. The private placement will make Teck True Gold’s biggest shareholder.
True Gold will use the investment to fund exploration of its Karma and Liguidi projects in Burkina Faso, West Africa.
“Teck has been a long-term and supportive shareholder in our group of companies, including Fronteer Gold and Pilot Gold, and we welcome their new investment in True Gold,” True Gold executive chairman Mark O’Dea said in a press release.
“This financing will allow us to significantly ramp up our exploration efforts to demonstrate potential for resource growth at Karma and systematically test priority targets at Liguidi.”
True Gold’s stock was up 28% to $0.34 per share at close of markets Thursday. Teck’s stock was down a fraction of percent to $29.17.
By Nelson Bennett
