Jilbey to raise $1.2m for gold projects

Vancouver — Jilbey Gold Exploration (JLB-V) has entered into an agency agreement with First Associates Investments to raise $1.2 million for its Taranga and Nongo Fayere gold exploration permits in Burkina Faso, West Africa.

First Associates will sell a maximum of 3 million units, priced at 35 each, on a best-efforts basis for gross proceeds exceeding $1 million. A unit consists of one share and half a share purchase warrant. Each whole warrant entitles the holder to buy one additional share of Jilbey at 50 for 18 months.

Jilbey has also arranged a non-brokered private placement to sell 518,000 units priced at 35 per unit for total proceeds of $181,300. The sole subscriber will be High River Gold Mines (HRG-T). Each of the private-placement units will consist of one share and half a share purchase warrant, and again, each whole warrant entitles the holder to buy one additional share of Jilbey at 50 for 18 months.

First Associates will receive a 10% commission, as well as an agent’s option to acquire up to 10% of the units placed, exercisable at a price of 35 per unit for 24 months. There is no commission payable on the private placement. The closing of both financings is subject to TSX Venture Exchange and regulatory approval.

Jilbey will use the money to explore its Taranga and Nongo Fayere gold projects. These properties are adjacent to High River’s Taparko gold deposit, which is the subject of an ongoing feasibility study.

The Jilbey permits were acquired to cover gold-anomalous zones that extend off the Taparko permit. Jilbey anticipates a drill program will begin during the fourth quarter 2003.