Toronto-listed Great Lakes Minerals has raised the necessary funds to construct its Lluvia de Oro gold mine in Mexico’s Sonora state, with startup scheduled for the first quarter of 1996.
The company concluded a $10-million private placement issue of convertible debentures by way of special warrants. The special warrants are exchangeable into 7% convertible unsecured subordinate debentures with a 5-year term convertible at a share price of $1.25.
The mine is expected to produce 25,000 oz. gold per year at a cost of US$235 per oz.
In the meantime, exploration drilling continues, and trenching across the Lluvia Shear North Zone has revealed gold values of 2.4 grams over 24 metres and 3.5 grams over 12 metres.
Drilling is also planned for the Palmarito silver-gold project in neighboring Sinaloa state. The deposit, which hosts a drill-indicated reserve of 2.5 million tonnes grading 0.3 gram gold per tonne and 131 grams silver along a strike length of 150 metres, remains open at depth and along strike for more than 3 km. Palmarito also hosts high-grade waste and tailings dumps totalling 500,000 tonnes at an average grade of 195 grams silver per tonne.
Be the first to comment on "Great Lakes raises funds to build mine in Mexico"