Manhattan gets $5.4 million

Vancouver The sale of six million special warrants, priced at 90 each, has added $5.4 million to the coffers of Manhattan Minerals (MAN-T).

The financing was fully subscribed and is expected to close by Sept. 18. A syndicate, consisting of National Bank Financial and Dundee Securities, acted as agent for the private placement.

The funds will be used to complete a draft environmental impact statement and for community relations activities around the company’s Tambo Grande massive-sulphide property in Peru.

The company ran into local problems earlier this year when a politically motivated group vandalised its project facilities near the town of Tambo Grande. The junior blamed a group whose aim is to disrupt government and industrial activities heading into the Peruvian election.

The disruption forced a delay in Manhattan’s completion of a feasibility study, originally expected by June, on the TG-1 deposit.

At last count, Manhattan has spent US$13.9 million exploring Tambo Grande.

The company continues to work on the prefeasibility study for the TG-1 oxide gold deposit and the TG-1 and TG-3 sulphide deposits. It is also exploring the B-5 zone and other geophysical anomalies.

The TG-1 oxide cap contains an inferred resource of 8 million tonnes grading 5.2 grams gold and 48 grams silver. This is equivalent to 1.3 million oz. gold and 12.4 million oz. silver. Further drilling on the underlying TG-1 sulphides expanded the resource to an inferred 64.2 million tonnes grading 1.7% copper and 1.4% zinc, plus 0.7 gram gold and 31 grams silver, based on a cutoff grade of 1% copper-equivalent.

TG-3 lies 500 metres south of TG-1 and consists of two distinct mounds, or lobes, of mineralization.

The northern lobe is richer in zinc and contains 20 million tonnes grading 0.9% copper, 2.7% zinc, 0.8 gram gold and 35 grams silver, based on a cutoff grade of 1% copper-equivalent.

The copper-enriched southern lobe hosts 48 million tonnes grading 1.1% copper, 1.1% zinc, 0.9 gram gold and 25 grams silver at a cutoff grade of 1% copper-equivalent.

Manhattan is earning a 75% stake in Tambo Grande, which consists of 10 concessions measuring 100 sq. km.

The company also has a 100% interest in the 737-sq.-km Lancones concessions and an option to earn up to a 100% interest in the 32-sq.-km Papayo joint-venture lands.

The Lancones land package adjoins Tambo Grande mainly to the south and partially to the east and north.

The Papayo concessions, which include the B-5 anomaly, are to the south. Manhattan can earn an initial 51% interest in Papayo by spending $5 million on exploration over five years and paying $250,000.