Junior explorers get cash influx (October 07, 2004)

A series of financings have several junior exploration companies ready to go on established projects.

A $3.15-million flow-through financing for Committee Bay Resources (CBR-V) will fund further exploration in the Committee Bay greenstone belt northeast of Baker Lake, Nunavut. Committee Bay, which has a 45% interest in, and operates, a joint venture with Gold Fields (GFI-N), is exploring for gold in the region.

The underwriters, led by Canaccord Capital, are taking 1.75 million flow-through shares at $1.80 each. The underwriters receive a 6% commission. Gold Fields has an option to participate in the financing, for up to 9.9% of the shares issued.

Vancouver-based explorer Belvedere Resources (BEL-V) is financing further work on three Finnish properties with a 2.8-million-share private placement at 70, for gross proceeds of $2 million.

The money will finance drill programs at Belvedere’s iron oxide-copper-gold targets at Kuusamo in northern Finland, at the Kopsa and Antinoja gold prospects in central Finland, and at the Rantasalmi gold project in southeastern Finland.

King’s Bay Gold (KBG-V) has arranged to raise up to $1.5 million in an issue of flow-through and common shares with warrants attached. The company would issue up to 3.3 million shares at 45 to finance work on its Pickle Lake and Red Lake projects in northwestern Ontario.

Common share units would have a full warrant attached, and flow-through shares half a warrant. Full warrants would be exercisable to buy one share at 55, and expire in two years.

Uranium explorer Southern Cross Resources (SXR-T) has sold 1 million shares to finance work on a joint venture with private Pitchstone Exploration in the Athabaska Basin of Saskatchewan. Drilling is planned for the winter season on electromagnetic conductors located in earlier geophysical work by Pitchstone.

Southern Cross’s issue was half in flow-through shares priced at $1.35 and half in common shares priced at $1.35, and grossed $1.2 million.