The proceeds of a private placement by Inco Gold (TSE) will be used by High River Resources (VSE) to fund exploration programs on the Snow Lake property located 100 miles west of Thompson in northern Manitoba.
Inco Gold will purchase 500,000 flow-through shares of High River at $1.20 per share, for total subscription proceeds of $600,000. This is in addition to the flow-through private placement of 2.25 million shares at $1.32, and a similar amount of warrants exercisable at $1.57 per share by Inco Gold previously announced by High River.
This latter private placement is subject to the completion of the proposed amalgamation of High River and Nor-Acme Gold Mines (TSE). Following amalgamation, the new company would own 100% of the Snow Lake mine property. At present, High River holds a 60% interest.
Inco Gold now owns 750,000 shares of High River giving it a 9.61% interest, and has warrants to purchase an additional 750,000 shares at $1.57. Following completion of the new financing, Inco Gold would own about 15% of the then issued capital of High River.
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