Shareholders of Golden Cross Resources (ASX: GCR) received good news as its strategic alliance with Chinese CUMIC investment vehicle subsidiary HQ Mining Resources has added $2 million to the cash kitty. Total cash reserves for Golden Cross are a healthy $4.3 million.
The number of shares to be issued to HQ will be calculated by dividing the $2 million by a 10% discounted Volume Weighted Average Price (VWAP) of Golden Cross shares during the five ASX Trading Days commencing tomorrow, Thursday 18 June 2009.
HQ currently holds 15% of the issued shares of Golden Cross. The alliance with HQ was formed to progress Golden Cross' 100%-owned Copper Hill copper-gold project, as well as expand its exploration programmes in South Australia where it has applied for new tenements in the Gawler Craton.
Recently Golden Cross and CUMIC executives met in China to discuss potential joint projects and future plans in China and Mongolia. Golden Cross assisted CUMIC in its evaluation of several Mongolian copper and copper-gold-molybdenum projects.
