Glamis Gold places 1.25 million shares

Glamis Gold (TSE) has entered into an agreement with Loewen, Ondaatje, McCutcheon to place 1,250,000 common shares at a price of US$8.625 per share for gross proceeds of $10.8 million.

This sale is in addition to the sale of two million special warrants which was previously announced.

The proceeds of the issue will be used to fund the acquisition of gold properties and to augment Glamis’s working cpaital. Glamis’s criteria for property acquisitions are that a property should have the potential for large reserves that can be mined on an an open-pit basis.

The ores should be suitable for gold extraction by heap leaching and the property should be capable of being brought into production in stages to avoid large capital outlays at any one time and projected cash operating costs should be US$200 or less per oz.

Glamis operates the low-cost Picacho and Rand mines in California.