Two private placements have been completed by Chelsea Resources which will net the company $2.4 million. In addition, it has a commitment to place 400,000 units consisting of one share at $5 and a warrant at $5.25. The stock has a one year hold and the warrants are exercisable over the same period.
Chelsea has also arranged a $1-million line of credit with the Royal Bank of Canada effective one month after full production is achieved at the company’s Spotted Horse mine (N.M., Oct 12/87) near Lewistown, Mont. The private placements will see Chelsea debt- free with over $2 million in working capital. Its milling operation at Spotted Horse is now in the tuneup phase and full production is expected any day now. Capital expenditures will now be directed towards the recently acquired Maginnis mine which will be reached from the eighth level of the Spotted Horse mine. Incorporating the Maginnis into the operation could see a doubling of existing gold production to 25,000-30,000 oz per year, a company consultant predicts. The Maginnis produced 100,000 oz gold during a brief production period in the early 1900s.
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