A private placement of 5.9 million common shares at a price of $1.30 per share has netted Athabaska Gold Resources (TSE) a total of $7.2 million.
The proceeds will be used to fund three projects: underground development and completion of a feasibility study on the Nicholas Lake gold project near Yellowknife, N.W.T.; the company’s share of exploration expenses on the nearby Damoti Lake joint venture; and exploration and metallurgical testwork on the Ladner Creek project.
Athabaska is proceeding with its original plan of constructing a mill on site at Nicholas Lake.
Plans for 1995 include underground development work; additional drilling to outline reserves; permitting for a mill and tailings pond; and carrying out a bankable feasibility study of an operation which would yield 34,000 oz. annually.
The property contains proven and probable reserves of 360,000 tons averaging 0.47 oz. per ton, with potential at depth for additional reserves.
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