Davidson Tisdale completes $4-million private placement

A private placement has been completed by Davidson Tisdale Mines which will net the company $4 million. The deal consisted of 999,823 treasury shares of the company at a price of $4.25 per share.

In another development, Getty Resources has confirmed its 50% interest in the Tisdale joint venture north of Timmins, Ont. Getty will also acquire a 50% interest in 9 claims adjacent to the Tisdale property in return for 100,000 common Getty shares to Davidson Tisdale.

Getty had the option to take down the 999,823 Tisdale shares in its agreement with the company. However, in order to free its soon- to-be-issued prospectus of any undue encumbrances, such as a $4-million payment, Getty assigned its option to an international gold fund. The gold fund then purchased the Davidson Tisdale shares. According to Davidson Tisdale Vice- President Ken R. Kent, the block of stock represents less than 10% of the company.

At the site, Mr Kent says that “plenty of exploration is still required before a production decision is made.” Starting on Nov 15, the partners will be shipping an 8,000-ton bulk sample to the nearby Pamour Porcupine mill. This material was mined during underground exploration of the property.