Bellhaven Copper & Gold Inc. says gold producer Iamgold Corp. is buying a minority stake in the junior miner to help advance its key project in South America.
Under the deal, announced Wednesday, Iamgold will buy 11 million share and warrant units of Bellhaven for 55 cents each.
The $6-million financing will give Iamgold a 10.2-per-cent stake in Bellhaven.
The money will be used to develop Bellhaven's La Mina gold and copper project in Colombia, the junior miner said.
"The strategic investment by Iamgold represents a major milestone in the progress of Bellhaven as a pioneer of gold and copper exploration in Colombia," said Paul Zweng, Bellhaven's interim CEO. "Iamgold is one of the world's premier gold mining companies with a successful track record of advancing projects worldwide into production in an efficient and responsible manner. This investment represents a strong endorsement of the quality and potential of Bellhaven's La Mina gold-(copper) project in Colombia."
"The private placement will build our treasury to approximately $9.6-million, allowing us to ramp-up the exploration programs at La Mina," Mr. Zweng added.
The financing is slated to close in mid-November.