Financings arranged for Manhattan, Pacific Rim

Two high-profile explorers in Peru have topped up their tills with equity financings.

A private placement of 3.1 million special warrants priced at $3.25 each is adding $10 million to the coffers of Manhattan Minerals (MAN-T).

Each special warrant is exercisable into one share without additional payment. According to the underwriters, National Bank Financial and Sprott Securities, orders have already been received for more than the allotted amount. The deal is expected to close by June 15.

Manhattan will use the funds to continue exploring and developing the Tambo Grande massive sulphide project in Peru. In 1999, Manhattan discovered the TG-1 oxide gold deposit and increased the TG-1 sulphide deposit. In January of this year, the company discovered a new sulphide body at the B-5 geophysical anomaly.

The TG-1 oxide cap contains an inferred resource of 8 million tonnes grading 5.2 grams gold and 48 grams silver, equivalent to 1.3 million oz. gold and 12.4 million oz. silver. Additional drilling on the underlying TG-1 sulphides expanded the resource to an inferred 64.2 million tonnes grading 1.7% copper and 1.4% zinc, plus 0.7 gram gold and 31 grams silver, based a cutoff grade of 1% copper-equivalent.

TG-3, which lies 500 metres south of TG-1, consists of two distinct mounds, or lobes, of mineralization. The northern lobe is richer in zinc and contains 20 million tonnes grading 0.9% copper, 2.7% zinc, 0.8 gram gold and 35 grams silver, based on a cutoff grade of 1% copper-equivalent. The copper-enriched southern lobe hosts 48 million tonnes grading 1.1% copper, 1.1% zinc, 0.9 gram gold and 25 grams silver at a cutoff of 1% copper-equivalent.

Earlier this year, a drill hole testing the B-5 geophysical gravity anomaly, 11 km south of the TG-1 and TG-3 deposits, intersected 142 metres of massive sulphides averaging 0.5% copper and 0.9% zinc, plus 0.6 gram gold and 17 grams silver per tonne, starting at a depth of 436 metres. A higher-grade, 23-metre section ran 2% copper, 3.5% zinc, 1 gram gold and 56 grams silver between 464 and 487 metres of depth.

Exploration drilling continues on the B-5 target, while infill drilling is under way on TG-1. A feasibility study of TG-1 is due early in 2001.

Manhattan can earn a 75% stake in Tambo Grande, which consists of 10 concessions comprising 100 sq. km. The company also has a 100% interest in the Lancones concessions (737 sq. km) and an option to earn up to a 100% interest in the Papayo joint venture lands (32 sq. km). The Lacones land package adjoins Tambo Grande mainly to the south and partially to the east and north. The Papayo concessions are to the south. Manhattan can earn an initial 51% interest in Papayo by spending $5 million on exploration over five years and paying $250,000.

Meanwhile, overwhelming investor demand has induced Pacific Rim Mining (PFG-T) to amend a previously announced brokered financing. The deal now includes an additional 500,000 special warrants, for gross proceeds of $7.1 million.

The $7.1-million proceeds of the financing will be used to accelerate exploration on the junior’s Luicho gold project in southern Peru, where a 20,000-metre program of reverse-circulation drilling is set to begin.

Each special warrant will be exerciseable, without further payment, into one unit consisting of one share and half a warrant. A whole warrant will entitle the holder to buy an additional share at $5 for one year. The financing includes a provision for a maximum oversubscription of 10% of the special warrants.