Billiton eyes Kazan project

Tri Origin Exploration (TOE-V) will issue 800,000 units, at 25 apiece, to London-based Billiton to finance preliminary exploration at the Kazan copper-gold project, near Baker Lake in Nunavut.

Units consist of a share and a warrant exercisable until Dec. 31 at 33 each. Billiton will also exercise 273,333 Tri Origin warrants at 30, acquired when it took over Rio Algom. The issue requires regulatory approval.

Tri Origin holds a 100% interest in the 680-sq.-km Kazan property. Previous exploration suggests the region is prospective for Olympic Dam-style copper-gold deposits.

Following the initial program, Billiton can take up a half-interest in the project by spending $1.6 million on exploration over four years. It can acquire another 20% by providing development financing.