This could be a pivotal year for Vancouver-listed Massive Resources.
The company plans to file for a listing on the tse this month and financing, totalling $8.4 million, for the balance of the year should be in hand if an underwriting now in the works is fully subscribed.
Investment dealer Brault, Guy, O’Brien Inc. has agreed to underwrite the company by issuing shares and warrants in exchange for $4 million. Details are not yet available.
If the warrants in this issue are exercised, and taking into account money already raised, the company could have a total of $8.4 million to distribute to its exploration properties in Ontario: the 50%-held Lingman Lake property, a silver- gold property in the Favourable Lake area and a big land holding in the Pangis-Batchawana area.
The company already has $3 million in flow-through funds, most of which will be applied to a 30,000-ft drilling program at Lingman Lake. Being worked jointly with Agassiz Resources, reserves here stand at 1.47 million tons averaging 0.26 oz gold per ton.
The remainder will go to drill a gold-silver property at Borland Lake, also in northwestern Ontario. Last winter poor weather and ice conditions prevented the company from getting as much drilling done here as it had intended to do. Probable reserves are 431,967 tons of 8.43 oz silver and 0.02 oz gold per ton.
The property is located 15 miles from the Favourable Lake property being worked by Alberta-listed Zahavy Resources. This deposit will likely be ready to go into production early next year.
In the Pickle Lake area, Massive and two associated companies, also listed in Vancouver: Master Resources & Developments and Sands Minerals Corp. will each spend $205,000 on 5,000-ft drilling programs on their respective properties.
No plans have been finalized for work in the Pangis-Batchawana area but it is no secret Massive Resources is looking for major partners for grassroots work in the area.
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