Missinabie exploration funded by Q-Vest issue

First General Mine Management and Gold Corp. of Toronto, has signed a flow-through agreement to earn up to $150,000 for exploration at its Missinabie area gold properties near Wawa, Ont.

Under the agreement, fgm will also issue flow-through shares to Q-Vest Management II Inc. which will pass the tax writeoffs to its partners while retaining the shares in a mutual fund.

Shares of the mutual fund will be distributed to the partners before Dec 31, 1988, and they will be redeemable after June 30, 1989.

According to President Don Esson, 300,000 shares will be issued to the Q-Vest partnership at a yet- to-be-determined premium.

The company is negotiating another flow-through financing with Excan Mineral Explorations and Co. Ltd. Partnership of Val d’Or, Que., which could earn fgm $250,000 for its Missinabie program. Last year, fgm optioned the Missinabie properties from Conquest Yellowknife Resources and agreed to earn a 25% interest by spending $500,000 by the end of l987.

fgm will double its interest in the properties to 50% in 1988 by spending an additional $500,000 after which the project will be run as a joint venture.

Work on the Renabie properties has started with a crew consisting of two geologists and three helpers who are currently stripping and trenching in Central Stover Twp. Gold showings were discovered there during the 1940s.

“The old Pilegi showings are disconnected and we hope to put together a more cohesive picture,” said Mr Esson, who predicts that geological mapping, stripping and sampling will begin this month.