Joutel enters private placement with Australians

Toronto-listed Joutel Resources has agreed to enter into a private placement agreement with Balmoral Resources NL of Western Australia.

Under the terms of the transaction, Joutel will issue up to 400,000 shares of the corporation to Balmoral with applicable discounts together with warrants on a one-for- one basis to acquire additional shares before Dec 31.

A public company, Balmoral Resources NL, has interests in seven alluvial gold properties in Western Australia that are projected to provide Balmoral with an annual gold production of 84,000 oz by 1989. Currently two of these projects are in the start-up phase with a targeted production of 12,800 oz this year.

Meanwhile Joutel is carrying out exploration programs on three of its properties this year.

A program of mapping and diamond drilling is planned for the Montrose gold property near Stewart, B.C. This work will be carried out in the vicinity of a gold showing on which previous sampling returned 0.75 oz gold per ton over a width of 8 ft. On the company’s Pickle Lake claims located one mile east of the Highland Crow property, a program of ground surveys and diamond drilling is planned.

Exploration, including diamond drilling, will also be carried out this year on the Norton Lake, Ont., property by Duration Mines and on the Mishibishu Lake, Ont., and Valrennes Twp., Que., properties by Central Crude.