Welcome Opportunities (WLO-V) will buy 1 million units of its joint-venture partner, Columbia Gold Mines (COB-V), at $1.15 each.
A unit consists of one share and one non-transferable share purchase warrant. One warrant allows for the purchase of one additional share at $1.50 for a 12-month period.
Proceeds from the $1.1-million private placement will increase Columbia Gold’s working capital to $1.9 million. The company plans to raise an additional $4-4.5 million by way of a proposed rights offering.
Columbia Gold’s exploration plans are focused on the Fyre Lake volcanogenic massive sulphide copper-gold-cobalt project in the Finlayson Lake district of southeastern Yukon. A 20,000-metre drilling program will test the 3.5-km-long Kona geophysical target, as well as the Lake and Dub zones.
In 1996, diamond drilling defined a portion of the open-ended Kona zone over a strike length of 1,200 metres, with widths approaching 200 metres. The structure consists of an upper and lower horizon, each of which averages 10 metres in thickness.
The 71 drill holes returned an average grade of 1.5% copper and 0.12% cobalt, as well as 0.6 gram gold per tonne. The southernmost hole intersected 31.3 metres grading 2.29% copper, 0.07% cobalt and 0.53 gram gold (including a 7-metre interval grading 6.07% copper, 0.05% cobalt and 0.68 gram gold).
The Lake zone is a northwest-trending, 4-km-long geophysical anomaly coinciding with an anomalous copper soil anomaly directly south of the Kona zone. Surface samples from a large block of float in the zone assayed 1.2% copper, 5.5 grams gold and 1.1% zinc.
On trend with, and south of, the Lake zone is the Dub zone, a 3.5-km-long, coincident magnetic and electromagnetic anomaly.
Columbia Gold can earn up to an 80% interest in the property from Welcome Opportunities by spending $6 million in exploration. Welcome holds a back-in right to increase its interest to 55% should it choose to arrange production financing.
Columbia Gold has 14 million shares outstanding, or 19.1 million fully diluted.
Be the first to comment on "Columbia welcomes financing"