Proceeds from a private placement will enable Queenston Mining (QME-T) to explore the Kirkland Lake, Ont., joint venture, which it shares with Franco-Nevada Mining (FN-T).
The placement consists of 4 million special warrants priced at $2.50 each.
The units will be convertible into shares as soon as a prospectus has been accepted, which will be no later than Oct. 1. If fully subscribed, the offering will generate $10 million.
In 1996, the joint venture will spend $3.5 million, mainly in an effort to drill targets along the Larder Lake break.
The two companies hold a 96-sq.-km land position in the camp, covering about a 27-km strike length along the break.
The 640-tonne-per-day McBean mill and its tailings disposal site occupy part of the property; as a result, any gold deposits identified can be rapidly developed.
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