Vancouver-based Aurizon Mines (ARZ-T) has raised $8 million after issuing nearly 5.2 million flow-through common shares and 740,740 common shares at a price of $1.35 apiece.
The $7 million in proceeds from the flow-through shares are headed to northwestern Quebec and the company’s Casa Berardi gold project where the company plans an underground exploration program.
The plans call for the West mine’s ramp to be deepened to the 500-metre level, combined with drifting about 450 metres to the east, so as to open up the 113 zone. Definition drifting and bulk sampling will follow.
Zone 113 hosts 984,000 oz. gold averaging 7.4 grams per tonne, between 400 metres and 1,000 metres below surface. The probable resource is part of an overall resource in the West mine area totaling some 6.9 million tonnes at a grade of 6.7 grams.
Pending further financing of about $9 million, Aurizon will carry out additional drifting, definition drilling and bulk sampling in the Lower Inter zone, which sits a few hundred metres west of Zone 113.
The entire development program for the West Mine area is expected to last 19 months.
Aurizon plans to complete a resource estimate at Casa Berardi in the first quarter of 2003.
In return, the brokers received 6% of the gross proceeds, as well as warrants equal to 6% of the number of shares sold. The warrants expire two years after the deal’s closing and can be exercised at $1.35 each.
The $1 million in proceeds from the common shares will be used for working capital.
Be the first to comment on "Aurizon raises $8m for Casa Berardi"