In a private placement, Monk Gold & Resources (ASE) has raised $402,000 to cover capital expenses at the Cerro Mayal placer gold operation in western Argentina.
The placement consists of 1.7 million treasury shares and 625,065 warrants. Each warrant entitles the holder to buy an additional Monk share for 32 cents by Nov. 30, 1995.
Monk can earn a 27% interest in Cerro Mayal from privately owned DSE Resources and is seeking shareholder approval to complete the transaction. The company has also arranged financing of $198,000 from the Canadian International Development Agency (CIDA) to train mine workers at the project. It must begin repaying the CIDA loan once revenues from the project exceed $5 million.
Sikaman Gold Resources (TSE) has a 27% interest in the operation, with private company Aldermines International holding 46%.
Proven and probable reserves stand at 380,000 oz. gold, extraction of which is scheduled to begin in February.
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