Central Crude plans $7.7 million financing

Through two private placements totalling 700,000 units, Central Crude (TSE) expects to raise $7.7 million for continued exploration on its Eagle River and Moss Lake gold properties in northern Ontario. Each unit in the first 300,000-unit placement consists of one flow- through common share, one series A warrant, and one Series B warrant, at a price of $4.50 per unit.

Each unit in the second 400,000- unit placement consists of one common share and one Series B warrant, at a price of $4 per unit.

Central Crude expects the initial closing to be completed before the end of the year.

The company says flow-through funds generated by the private placements will be spent primarily to accelerate exploration at the Moss Lake project in the Shebandowan area of northwestern Ontario. Financing generated by the common share issue will be spent on further exploration at Eagle River deposit near Mishibishu Lake, Ont.

Both projects are joint ventures with Noranda (TSE) subsidiary Hemlo Gold Mines (TSE).

Series A warrants will entitle the holders to purchase 200,000 additional flow-through common shares on or before March 21, 1991, and to receive an additional 200,000 Series B warrants. Series B warrants will entitle the holders to acquire common shares at a price of $4.50 per share up to Dec. 31, 1992.

The placements are subject to approval by the Vancouver and Toronto Stock exchanges, all other regulatory authorities, and Central Crude shareholders.