FINANCINGS — New Claymore funds Buffalo Hills exploration

New Claymore Resources (NCS-V) has agreed to a brokered private placement of up to 1 million units at $1.60 each, for gross proceeds of up to $1.6 million.

Each unit will consist of one common share and one non-transferable warrant redeemable for an additional share at $1.75 for a 1-year period.

Golden Capital Securities will act as exclusive agent and is entitled to a 7.5% commission, payable in cash or shares, and an $80,000 corporate finance fee, payable in shares. In addition, Golden Capital will receive 200,000 warrants exercisable under the same conditions set out in the private placement.

New Claymore will use the net proceeds primarily to fund diamond exploration on the company’s land holdings in the Buffalo Hills area of north-central Alberta.

* Brimstone Gold (BSC-V) has closed a brokered sale of approximately 2.5 million special warrants at 27 cents each, for gross proceeds of $688,000.

The brokered sale follows a non-brokered private placement of 1.3 million special warrants at the same price, which closed April 27, 1998.

Each special warrant is convertible into a unit consisting of one common share and one warrant redeemable for an additional share at 40 cents for a period of one year.

The net proceeds will be used to fund further exploration at the Mayflower gold mine, near Whitehall, Mont.

* Sonoma Resource (SNA-V) has completed a private placement financing of almost 3.4 million special warrants at 15 cents each, for gross proceeds of $502,500.

Each special warrant is exchangeable for one unit consisting of one common share and one non-transferable share purchase warrant. Each warrant is redeemable for one additional share at 15 cents in the first year or 17 cents in the second year.

* First Quantum Minerals (FM-V) has engaged Investec Securities, a member of Investec Group of South Africa, as agent for a private placement of up to 3.75 million common shares at $2.60 each, for gross proceeds of up to $9.75 million.

In addition, Investec will act as agent for a pair of 3-year convertible notes with a combined value of $7.69 million. A $7.25-million convertible note has been arranged with a strategic alliance partner and a second $440,000 convertible note has been arranged with an institutional investor.

The notes bear interest at 5% per year. The principal amounts may be converted into common shares at $3.35 per share until Nov. 19, 1999 and at $4.50 each from that date until May 19, 2001. Accrued interest may also be convertible into common shares when due, starting at a conversion rate of $2.85 per share on Nov. 19, 1998 and rising to $4.10 by May 19, 2001, when the notes are due.

For each share issued pursuant to the conversion of any part of the principal or interest of the notes, one-half of a non-transferable share purchase warrant will be issued to the noteholder. One whole warrant will entitle the holder to purchase an additional share at $5.60 for a period of two years.

The total realized proceeds from the combined financing, $17.4 million, will be used by First Quantum to partially repay short-term credit facilities, fund ongoing development of the company’s properties and to augment general working capital.