Loki funds acquisition, plans drilling at Brewery Creek

The first phase (5,000 metres) of a planned 15,000-metre drill program was expected to be under way this month at the Brewery Creek property.

Loki Gold (VSE) is now the operator following a previously announced agreement to acquire the remaining 51% interest in the project from Hemlo Gold Mines (TSE).

Loki can acquire the interest, effectively giving it total ownership, by paying Hemlo $2 million plus two million common shares by Sept. 22. Loki arranged financing for the deal through a private placement agreement with Solomon Resources (VSE).

Solomon agreed to buy 1.8 million units at $1.10 per unit, with each unit consisting of one share and share purchase warrant. Each warrant is exercisable for one year at $1.40 per share.

Preliminary reserves were last estimated at 16.2 million tons grading 0.054 oz. gold per ton, of which about 11 million tons are potentially heap-leachable.