Belmoral boosting Canreos interest (October 19, 1987)

A private placement of shares and warrants will raise Belmoral Mines’ interest in Canreos Minerals (1980) from 14% to 39.6%.

Under the agreement, Canreos will issue Belmoral two million shares at 80 cents per share, netting the former $1.6 million. Attached to these shares are warrants to purchase two million shares at $1.20 up to Sept 25, 1988, and a further two million shares at $1.80 up to Sept 25, 1989. If all warrants are exercised, Canreos will realize a total of $7.6 million. Belmoral has also exercised its conversion rights on a $1.45-million convertible debenture at 55 cents per share. Both transactions are subject to regulatory approval.

In other news, Canreos reports near completion of the summer mining campaign at the Missanabie property in northern Ontario. About 65,000 tons of ore with an estimated grade of 0.15 oz gold per ton have been mined. In addition, a low grade stockpile of 30,000 tons grading 0.06 oz has been segregated.

The company says shipments to the Kidd Creek smelter at Timmins to the end of September totalled 22,000 tons; the contracted amount is 56,000 tons. Deliveries are expected to be complete by the end of November.

A $500,000 drilling program at the Missanabie property is to begin this month. Also, the company will this month be starting a $500,000 exploration program at the recently optioned Melba gold property near Kirkland Lake, Ont.

A private placement of shares and warrants will raise Belmoral Mines’ interest in Canreos Minerals (1980) from 14% to 39.6%.

Under the agreement, Canreos will issue Belmoral two million shares at 80 cents per share, netting the former $1.6 million. Attached to these shares are warrants to purchase two million shares at $1.20 up to Sept 25, 1988, and a further two million shares at $1.80 up to Sept 25, 1989. If all warrants are exercized, Canreos will realize a total of $7.6 million. Belmoral has also exercised its conversion rights on a $1.45-million convertible debenture at 55 cents per share. Both transactions are subject to regulatory approval.

In other news, Canreos reports near completion of the summer mining campaign at the Missanabie property in northern Ontario. About 65,000 tons of ore with an estimated grade of 0.15 oz gold per ton have been mined. In addition, a low grade stockpile of 30,000 tons grading 0.06 oz has been segregated.

The company says shipments to the Kidd Creek smelter at Timmins to the end of September totalled 22,000 tons; the contracted amount is 56,000 tons. Deliveries are expected to be complete by the end of November.

A $500,000 drilling program at the Missanabie property is to begin this month. Also, the company will this month be starting a $500,000 exploration program at the recently optioned Melba gold property near Kirkland Lake, Ont.