Suntac raises funds for Polaris drilling

Funding for a drilling campaign at the Polaris-Taku project has been arranged by Suntac Minerals (VSE) through a 2.5 million-unit private placement at 20 cents per unit.

The units include a warrant to purchase an additional share at 20 cents for a period of two years.

Canarc Resource (VSE), the company’s largest shareholder, purchased the placement, thereby boosting its position in Suntac to 5.72 million shares. If Canarc exercises all of its 3.5 million warrants, its holdings will amount to about 58% of the company’s issued capital on a fully diluted basis. Suntac plans to use the funds for additional drilling at Polaris-Taku in northwestern British Columbia. The company is earning a 60% interest in the project from Rembrandt Gold Mines (ASE) by completing a feasibility study. Canarc controls Rembrandt as well, holding about 40% of the company’s shares (or 47% on a fully diluted basis).

Preliminary estimates put reserves at Polaris-Taku at about 2.2 million tons grading 0.43 oz. gold per ton. The proposed program will include infill and stepout drilling in an attempt to double reserves to at least two million contained ounces.

Canarc estimates the cost of an exploration and development program to bring the project to feasibility will total $5.5 million over an 18-month period. Concurrent with the Suntac financing, Canarc managed to complete two private placements to raise a total of $350,000.

The placements included a total of 437,500 units at 80 cents each. The units consisted of one share and one share purchase warrant exercisable at 80 cents within the first year and 92 cents within the second year.