Shareholders of Toronto-listed Onitap Resources will be asked to approve, at a special meeting on Feb 11, a private placement to raise working capital and the company’s agreement for exploration of its Isaac’s Harbour, N.S., property.
The private placement involves one million units at a price of 25 cents per unit, each unit to consist of one common share and one common share purchase warrant.
The common share purchase warrant will entitle the holder to purchase one common share of Onitap at any time on or before Dec 31 at a price of 35 cents per share. It’s estimated the total net proceeds from the private placement will be $250,000, which will be used as working capital.
Petromet Resources and Greenstrike Gold Corp. will spend $300,000 before March 31 on an initial program of ground geophysics and about 8,000 ft of diamond drilling. The objective is to develop reserves on the Boston-Richardson mine which produced, prior to 1912, in excess of 50,000 oz of gold with a recovered grade of 0.13 oz gold per ton.
Under Onitap’s agreement with Petromet and Greenstrike, the two latter companies will earn a 15% undivided interest in the Isaac’s Harbour property upon the completion of the $300,000 program.
This 15% interest may be exchanged for 1.2 million units of Onitap, each unit consisting of one common share and one common share purchase warrant entitling the holder to purchase one common share at 35 cents per share at any time up to June 30.
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