Bema raises US$33 million

To finance construction of the Refugio open-pit mine in Chile, Bema Gold (TSE) will raise US$33 million from a private placement of 330,000 special warrants.

The units are exchangeable into 7.5% convertible subordinated debentures, with the debentures being convertible at C$2.75 per share for a 5-year term. Of the proceeds, US$5.9 million will be used for general working capital and US$25 million will held in escrow until construction begins on the Refugio mine. The heap-leach project is a 50-50 joint venture with Amax Gold (NYSE) Ground-breaking is expected to commence in November, subject to the closing of a US$85-million debt financing and approval by the Chilean government. Production is planned for late 1995, recovering 233,000 oz. gold annually for a mine life of 9.4 years.