Most of the proceeds of a rights issue will be used to pay for a feasibility study of the Beta Vargas gold concession in Costa Rica, Lyon Lake Mines (ME) reports.
The rights issue, available only to Quebec residents, will raise a maximum of $708,000. Seven rights will permit the holder to buy one common share at 30 cents per share until Sept. 29.
The Canadian International Development Agency will contribute $250,000 to the first phase of a 2-phase work program.
The company has a 100% interest in the property, subject to a 10% net profit return to Costa Rican government agency MINASA and a 1% net smelter return (to a maximum of $350,000) to Adex Mining.
The first phase is aimed at confirming reserves, which were estimated by MINASA in 1987 to total 6.8 million tonnes grading 1.18 grams gold per tonne. The second phase will examine the prospects of an open-pit, heap-leach mine.
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