McFinley placement to raise $5 m

McFinley Red Lake Mines has entered into an agreement with Alexandra Mining, a private Bermuda-based company, for a private placement of McFinley shares. When completed, the deal will gross McFinley $5 million.

Alexandra will purchase 800,000 McFinley common shares at a $6.25 per share. The company will also receive warrants to purchase another 800,000 shares at $7.75 per share during a two year period. The cash will be used to finance McFinley’s proposed offer to purchase the remaining 50% interest in its gold property near Red Lake, Ont. Partners Phoenix Gold Mines and The Coniagas Mines hold the interest.

The deal is scheduled to close on June 1 and remains subject to McFinley receiving regulatory approval and Alexandra completing a financing which will enable it to meet its commitment to McFinley.