Aurora Gold (ASE) plans to take nearly $850,000 cash profit from an oil and gas investment and spend it on mineral property acquisitions.
Gary Nolin, a director and officer of the Calgary-based company, says the company gained the bulk of its current $1 million in working capital by buying the oil and gas assets of Sennol Resources in April for $900,000 (with $500,000 in cash), then selling them in May for $1.65 million.
Because the money has not been raised by issuing flow-through shares, the company can spend it for any corporate purpose, not just exploration.
Belmoral Mines has an option to earn up to a 60% interest in the May and Jennie property near Nelson, B.C. by paying $50,000 to Aurora and spending $650,000 on exploration over three years.
Recent underground and surface samples taken on the property by Belmoral has as high as 4.4 oz gold per ton.
The company also has seven other mineral properties in Quebec, Ontario and British Columbia.
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