Fans of the eclectic rock band the Grateful Dead surely have the tune in the title strumming through their heads as they read the news Wednesday morning that GreenBank Capital Inc. (CSE:GBC)(OTCPK:GRNBF) is acquiring a 19.9% stake in privately-held Gander Exploration.
The transaction is not the typical type most would associate with an acquisition, as Gander is issuing GreenBank the 19.9% interest as a settlement of $99,500 in management fees.
A Google search turned up no results for a Gander Exploration website. GreenBank said in today's news release that the company's flagship property is Cripple Creek in Newfoundland, comprised of 65 claims 25 kilometres of the town of Gander.
Across 2011 to 2013, Capstone Mining (TSX:CS) explored Cripple Creek, with assays from a 10-hole drilling program highlighted by cuts of 9.28 metres of 2.98% copper, 3.6 metres of 4.74% copper and 0.16 grams per tonne gold.
Capstone's findings built upon grab samples of others in 2005 that assayed up to 19.8 g/t gold, 10.2% copper and 21.9 g/t silver at the project.
Gander's portfolio also contains the Dudder Laker property about 40 kilometres north of Gander and the Blue Wind property about five kilometres still further north. Although limited, exploration data from Dudder is supportive of additional exploration programs, including drill intercepts up to 7.0 g/t gold of 2.8 metres within a wider cut of 9.8 metres grading 3.86 g/t gold. No exploration work has ever been conducted at Blue Wind.
Upon closing the acquisition, GreenBank CEO Danny Wettreich will take the position of Chairman of the Gander Board of Directors. The plan is for GreenBank to continue to provide merchant banking services to Gander with a goal of listing the company on the Canadian Securities Exchange in the future.
Shares of tightly-held GreenBank are trading up four cents at $1.40 late Wednesday morning in Toronto.
