Most of the investors holding warrants in Fort Knox Gold Resources (TSE), including Inco (TSE), have exercised those warrants, raising $272,000 for further exploration on the Fawcett Twp. property near Shining Tree, Ont.
A total of 317,205 warrants, which each carried the right to purchase one flow-through Fort Knox share at $1 on or before Dec. 31, 1991, were issued as part of a private placement last November. Fort Knox recently traded at $1.10. Combined with the cash remaining in Fort Knox’s kitty, the new financing will provide more than $350,000 for exploration. Richard Agar, Inco’s director of acquisitions and property management said the next phase would involve both drilling and ground geophysics on the 225-claim property.
Inco, with a 41% interest in Fort Knox, recently took over management of the project after Fort Knox intersected significant widths of both nickel-copper and zinc-copper mineralization.
About half of the flow-through financing must be spent by February, the rest by the end of the year.
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