Toronto-based Nova Beaucage Mines has completed a private placement of $2.7 million with the Societe en Commandite CMR 1987 Partnership.
Under the terms of the placement, the partnership will earn a 15% undivided interest in the company’s Elder mine project near Rouyn, Que., by spending $2.7 million on Canadian exploration. In l988 the company will reacquire its 15% interest in exchange for common shares of the company.
This transaction has been approved by the Toronto Stock Exchange subject to shareholder approval.
TSE-listed Nova Beaucage and Aunore Resources operate the Elder mine under a joint venture agreement with the company holding 35% and Aunore 65%. The joint venture will spend $7.5 million in exploration funds on the Elder mine this year and expects to commence a 15,000-ton milling sample in late l987, followed by a pre- production schedule for l988.
In June l986, proven and probable reserves at the Elder mine were calculated at 1.5 million tons of 0.189 oz of gold per ton. These reserves do not include the recently announced 300,000 additional tons of 0.31 oz.
It is projected that the mine will produce 25,000 to 30,000 oz of gold per year when full commercial production is reached.
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