Junior explorers get cash influx (October 18, 2004)

A series of financings has several junior exploration companies ready to go on established projects.

A $3.15-million flow-through financing for Committee Bay Resources (CBR-V) will fund further exploration in the Committee Bay greenstone belt, northeast of Baker Lake, Nunavut. Committee Bay, which operates, and has a 45% interest in, a joint venture with Gold Fields (gfi-n), is exploring for gold in the region.

The underwriters, led by Canaccord Capital, are taking 1.75 million flow-through shares at $1.80 each. The underwriters receive a 6% commission. Gold Fields can participate in the financing for up to 9.9% of the shares issued.

Vancouver-based explorer Belvedere Resources (BEL-V) is financing further work on three Finnish properties with a 2.8-million-share private placement priced at 70 apiece. Gross proceeds of $2 million will finance drilling at Belvedere’s iron oxide-copper-gold targets at Kuusamo in northern Finland, at the Kopsa and Antinoja gold prospects in central Finland, and at the Rantasalmi gold project in southeastern Finland.

King’s Bay Gold (KBG-V) has arranged to raise up to $1.5 million in an issue of flow-through and common shares with warrants attached. The company would issue up to 3.3 million shares at 45 to finance work on its Pickle Lake and Red Lake projects in northwestern Ontario.

Common share units would have a full warrant attached, and flow-through shares, half a warrant. Full warrants would be exercisable to buy one share at 55, and expire in two years.

Uranium explorer Southern Cross Resources (SXR-T) has sold 1 million shares to finance work on a joint venture with privately owned Pitchstone Exploration in the Athabasca Basin of Saskatchewan. Drilling will test electromagnetic conductors located previously by Pitchstone.

Southern Cross’s issue was half in flow-through shares priced at $1.35 and half in common shares priced at $1.35, and grossed $1.2 million.