An additional loan of $2.5 million will enable Granduc Mining (TSE) to finance its share of pre-development work on the Farley Lake gold deposit in Manitoba.
Farley Lake is included in Granduc’s Keystone joint venture with Black Hawk Mining (TSE) and contains an estimated open-pit reserve of 1.6 million tonnes grading 3.62 grams gold per tonne.
The loan is being made by Conwest Exploration (TSE) and associated company Jascan Resources (TSE), and raises to $6 million the total amount owed to those companies.
Granduc used the original loan of $3.5 million to complete the $10-million earn-in on the Keystone project.
In return for advancing the additional funds, Conwest and Jascan will be issued warrants for buying 600,000 shares of Granduc, exercisable for three years at $1.40 per share.
The new loan bears interest at prime plus 1% and is payable Dec. 31, 1995. Conwest and Jascan have agreed to defer to May 31, 1995, payment on the first loan.
The Keystone joint venture began mining the BT deposit late last year. The project is expected to reach its target of 1,200 tonnes per day in August.
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