BRITISH COLUMBIA

Alexco completes sale of Brewery Creek property in Yukon to Golden Predator

09/27/2012 06:51 EDT | Updated 11/27/2012 05:12 EST
VANCOUVER - Alexco Resource Corp. (TSX:AXR) 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. (TSX:GPD) .

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 $4 million cash, 7.5 million Golden Predator shares and warrants that can be used within two years to purchase Golden Predator shares at $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 $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 $2 million.

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

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