A public offering of 4.6 million shares in the United States is expected to add some cash to a Northgate Exploration balance sheet recently ravaged by a strike at the company’s Chibougamau operations.
While Northgate officials would not say how the shares will be priced, the proceeds will be added to the company’s capital, to cover general corporate purposes including debts and exploration costs.
This announcement comes after the company has reported a consolidated loss of $1,165,000 or 7 cents per share for the six months ended June 30, compared to consolidated net income of $731,000 or 5 cents per share in 1986.
During the second quarter, Northgate had a consolidated loss of $1,241,000 or 7 cents per share compared with consolidated net income of $509,000 or 3 cents per share including the $550,000 extraordinary tax recovery in 1986.
Metal production in the first six months totalled 37,500 oz gold including 2,700 oz from subsidiary Orofino Resources. That compares with 40,500 oz during the same period in 1986.
Copper production totalled 7,726,000 lb including 274,000 lb from Orofino, down from9,927,000 lb in 1986 and silver was 45,000 oz compared with 52,700 oz in 1986.
Results from drilling programs at the company’s Dore Lake and Copper Cliff properties in Chibougamau, Que., will be available in September and November respectively.
At presstime Northgate shares were trading at $11 on the Toronto Stock Exchange, just below its 52-week high of $13 but well above its $5 low point.
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