Northern Orion tops up treasury

A special warrant financing will raise $40 million for Northern Orion Explorations (VSE).

Investment dealers Gordon Capital, Deutsche Bank Securities, Yorkton Securities and Bunting Warburg have agreed to acquire a total of 10 million special warrants at $4 each.

Each warrant is exchangeable into one share and half a warrant, with each full warrant exercisable at $5.25 until July 18, 1996.

Miramar Mining (TSE), the company’s controlling shareholder, will buy 3.75 million of the special warrants. As a result, Miramar will hold 15.05 million of Northern Orion’s then-issued 43.9 million shares, and, moreover, it has the right to vote a further 15 million shares.

Meanwhile, on Northern Orion’s Agua Rica property in Argentina, BHP Minerals continues to intersect copper values in an ongoing drilling program.

BHP holds a 70% interest in Agua Rica and has tested, with widely spaced holes, an area measuring up to 750 metres in an east-west direction and up to 750 metres in a north-south direction.

Hole 18, drilled 500 metres east of the main area drilled, included a 60-metre interval starting at 16 metres grading 2.16% copper, 0.14 gram gold and 0.028% molybdenite.

Drilling on the Agua Rica deposit is continuing to the west, south and east of the deposit which is estimated to contain a mineral resource of 100 million tonnes grading in the range of 1% to 2% copper-equivalent.

Results from recent drilling are shown below:

HoleIntervalWidthCopperGoldMolybdenite

(m)(m)(%)(g/tonne)(%)

140-160600.020.440.021

60-148881.080.310.029

148-3431950.660.300.022

150-2822820.010.070.008

282-340580.600.130.042

340-4961560.480.230.039

160-126260.040.300.015

26-198721.430.400.015

98-134360.290.110.005

134-2711370.100.120.001

170-1021020.020.140.025

102-182800.300.160.022

182-278960.310.150.037

278-321430.200.360.026

1816-176602.160.140.028

76-110341.420.660.023

110-180700.600.370.026

x180-3982180.210.200.019