Northgate Exploration (TSE) has agreed to provide MSV Resources (ME) with a financing package totalling $6.5 million. This includes a $5.2-million bridge facility which must be paid back by April 30, 1989. The remaining $1.3 million is for a private placement of MSV shares priced at $1.50 per share. MSV’s main asset is a 100% interest in the Eastmain gold deposit in Quebec. A final $5.2-million payment is owed Placer Dome, which sold its interest in the project to MSV.
The bridge facility must be repaid in the form of cash or MSV shares. Including merchant banking fees, a total of $6 million is repayable.
MSV is completing a feasibility study on the Eastmain deposit, which the company says could lead to a production decision. Reserves total one million tons grading 0.44 oz gold per ton.
Prior to the Northgate deal, MSV’s largest corporate shareholder was Kerr Addison Mines (TSE), which holds 1.2 million shares of the company.
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