Canada, BC: Alexco completes sale of Brewery Creek property in Yukon to Golden Predator

Alexco Resource Corp. has completed the sale of its interest in the Brewery Creek property in Yukon Territory, under a follow-on agreement reached in February with Golden Predator Corp, Canadian Business reported on September, 27.

Golden Predator had already earned a majority stake in the property under an August 2009 option agreement but Alexco retained a 25 per cent interest in the property.

In return for its 100 per cent interest in the property, Alexco received a total of C$4 mln cash, 7.5 mln Golden Predator shares and warrants that can be used within two years to purchase Golden Predator shares at C $1.15 each.

Golden Predator shares gained seven cents to 42 cents after trading resumed Thursday on the Toronto Stock Exchange. Alexco's gained 12 cents to C$4.29 in early afternoon trading.

Under their agreement, Alexco will also receive a two per cent royalty on the first 600,000 ounces of gold produced from Brewery Creek, increasing to 2.75 per cent after that.

Golden Predator has the right to repurchase 0.625% of the increased royalty from Alexco at any time for C$2 mln.

Golden Predator announced later that it had arranged a US$35 mln secured credit line with MF Investment Holding Co. to help finance the Brewery Creek project.

The first US$10 mln drawn on the credit line was advanced on Sept. 25, including C$3.2 mln used to pay Alexo. The rest will be used for the Brewery Creek project.

28 September, 2012