Costa Rican explorer Lyon Lake Mines (ME) will enter the ranks of junior gold producers after it completes a financing worth US$3 million. The company will use the funds to bring its Beta Vargas property into production.
At present, proven and probable reserves stand at 2.1 million tonnes averaging 1.3 grams gold per tonne within a 500-metre-long zone. Lyon Lake envisages an open-pit/heap-leach operation.
Towards this end, Lyon Lake will raise US$500,000 through a private placement of common shares priced at 25 cents each, and an additional US$2.5 million by way of a convertible, redeemable debenture with a face value of US$2.5 million. The debenture, which matures Oct. 31, 1999, has a yield of 8%, payable in cash or common shares.
Airborne magnetic and radiometric surveys over the the 39-sq.-km property indicate the presence of a 7-km-long, northwest-trending structure with six anomalous areas thought to represent potentially gold-bearing alteration zones.
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