Buffalo Gold Ltd. (TSX-V:BUF.U, OTCBB:BYBUF), a Vancouver-based mineral producer with properties in Papua New Guinea and Australia, is expanding its interests to Spain with a $5.5 million investment in Kinbauri Gold Corp. (TSX-V:KNB).
Kinbauri plans to use the proceeds of its brokered private placement to buy two gold mines in northern Spain.
Under the terms of the private placement, Buffalo will acquire 11 million subscription receipts, each of which is convertible to a $0.50 Kinbauri share.
Buffalo will own roughly 28% of Kinbauri if Kinbauri's $13.5 million private placement is fully subscribed.
With the funds, Kinbauri plans to buy Spain's El Valle and Carles gold mines and begin exploration drilling at El Valle. Kinbauri hopes to identify at least a million ounces of gold at the El Valle mine.
Buffalo share price range during the past week: between $1.54 and $1.79; 52-week high: $2.87; 52-week low: $0.65.