A special warrant financing will raise $40 million for Northern Orion Explorations (VSE).
Investment dealers Gordon Capital, Deutsche Bank Securities, Yorkton Securities and Bunting Warburg have agreed to acquire a total of 10 million special warrants at $4 each.
Each warrant is exchangeable into one share and half a warrant, with each full warrant exercisable at $5.25 until July 18, 1996.
Miramar Mining (TSE), the company’s controlling shareholder, will buy 3.75 million of the special warrants. As a result, Miramar will hold 15.05 million of Northern Orion’s then-issued 43.9 million shares, and, moreover, it has the right to vote a further 15 million shares.
Meanwhile, on Northern Orion’s Agua Rica property in Argentina, BHP Minerals continues to intersect copper values in an ongoing drilling program.
BHP holds a 70% interest in Agua Rica and has tested, with widely spaced holes, an area measuring up to 750 metres in an east-west direction and up to 750 metres in a north-south direction.
Hole 18, drilled 500 metres east of the main area drilled, included a 60-metre interval starting at 16 metres grading 2.16% copper, 0.14 gram gold and 0.028% molybdenite.
Drilling on the Agua Rica deposit is continuing to the west, south and east of the deposit which is estimated to contain a mineral resource of 100 million tonnes grading in the range of 1% to 2% copper-equivalent.
Results from recent drilling are shown below:
HoleIntervalWidthCopperGoldMolybdenite
(m)(m)(%)(g/tonne)(%)
140-160600.020.440.021
60-148881.080.310.029
148-3431950.660.300.022
150-2822820.010.070.008
282-340580.600.130.042
340-4961560.480.230.039
160-126260.040.300.015
26-198721.430.400.015
98-134360.290.110.005
134-2711370.100.120.001
170-1021020.020.140.025
102-182800.300.160.022
182-278960.310.150.037
278-321430.200.360.026
1816-176602.160.140.028
76-110341.420.660.023
110-180700.600.370.026
x180-3982180.210.200.019
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