Newfield Minerals has settled the terms of a flow-through financing enabling the company to proceed with rehabilition of Teck Corp.’s Kirkland Minerals No 2 shaft.
The shaft is located approximately 1,000 ft south of the Newfields-Teck gold deposit on the Teck-Hughes property in Kirkland Lake, Ont., where reserves stand at 100,000 tons of 0.25 oz gold per ton. According to Newfields the potential exists to double that.
Under the terms of the financing, Newfields will raise $1 million by issuing 235,294 shares at $4.25 per share to M.V.P. Exploration (1987).
M.V.P Exploration (1988) has also agreed to an additional $2 million tax cash flow-through funding commitment at $4.25 per share or 12% premium to the market (whichever is less).
Although this agreement is subject to approval, the price will be determined by the average closing price of Newfield’s common shares over a 20-day period prior to the M.V.P. (1988) closing date.
If approved the financing will also finance the cost of running three drill rigs on the property.
In other company news, Newfield has appointed Thomas Payette vice-president and chief financial officer. A former cfo with Golden Shield Resources, he was instrumental in completing the financing of the Golden Shield/Kerr Addison merger.
Newfield says Mr Payette will be offered an employee option of 25,000 shares at $3.75 per share.
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