Utah-based Plexus Resources (TSE) recently sold 300,000 shares or about half its 633,334 shareholding in Crown Butte Resources (VSE) to institutional investors at $8 per share. Plexus will use the proceeds to meet post-completion commitments at the Denton-Rawhide gold mine project in Nevada, and to repay debt and meet working capital requirements. The company’s cost basis in the Crown Butte shares is about 58 cents per share.
Denton-Rawhide is an open pit, heap leach mine near Fallon, which is expected to produce an average of 80,000 oz. gold per year when up to capacity. The mine was completed on budget and is expected to reach full production shortly. The mine is operated by Kennecott, its majority owner.
Be the first to comment on "Plexus sells Crown Butte shares"