Cambiex helps fund acquisition

Cambiex Exploration (CBX-T) has signed a letter-of-intent with Dynamic QSSP Fund for a private placement worth at least $2.5 million.

The company, an affiliate of Cambior (CBJ-T), will apply the proceeds to the acquisition cost of the Hope Bay gold properties in Nunavut.

In October, Cambiex persuaded Broken Hill Proprietary (BHP-N) subsidiary BHP Diamonds to reduce the original sale price from US$23 million to US$20.4 million plus 6 million non-transferable warrants exercisable at between $1.70 and $7.20 over three years and four months. The cash portion is to be paid in three instalments over two years.

On Sept. 30, Cambiex had $2.4 million in cash and equivalents, having spent $5.2 million on exploration projects during the first nine months of 1999.

Meanwhile, Cambiex has been exploring the Payne and Duquet gold properties in northern Quebec. The company can earn a one-third interest in the properties from government-owned Soquem and Virginia Gold Mines (VIA-M). Results from drilling and other work at both properties are to be released early next year.

Cambiex’s remaining projects include the Montagnes Tortue and Maripa gold properties in French Guiana.

The junior explorer posted a net loss of $512,529 (or 1 per share) on interest revenue of $133,200 during the recent 9-month period, compared with a net loss of $76,691 on interest revenue of $93,615 during the corresponding period of 1998.

Most of the recent 9-month loss was due to the expenditure of $613,259 on administration and business development, compared with $196,975 a year ago.