Friday, July 9, 2010

Goldcorp (NYSE:GG) (TSE:G) has acquired 19,047,721 Shares of Evolving Gold (TSE:EVG) in a private placement for $0.82 a share.

In a press release, Evolving Gold said they raised $15,619,131.22 in the private placement, which they'll use "to explore the Company's major exploration properties, the Rattlesnake Hills project in Wyoming and Carlin and Humboldt projects in Nevada.."

Evolving Gold CEO, Robert Barker, said this about the deal, "We are extremely pleased to establish a strong relationship with Goldcorp. We view this placement as a major vote of confidence in our two key exploration properties, Rattlesnake Hills in Wyoming and Carlin and Humboldt in Nevada, and in the quality of our exploration team. This additional funding places Evolving Gold in a solid position to continue to aggressively explore these projects, which are both characterized as large scale gold systems. We focus our exploration on large systems, with potential for the discovery of large gold deposits. Success when exploring these large systems requires a high level of geological expertise, perseverance, commitment to drilling, and solid financing. This latest addition to our treasury comes at a critical point in our exploration program. We now have the financing to continue to support our exploration team as we drive toward creating new value for our shareholders with major new gold discoveries."

The total investment represents about 15 percent of all outstanding and issued common shares in the gold miner.

Closing of the deal is expected on July 9, 2010.

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