Pamorex placement raises $3.5 million

Shareholders of Pamorex Minerals (TSE) recently gave their approval, at a special meeting, to a private placement with Giant Yellowknife Mines (TSE) involving about 4.8 million shares at $0.726 per share. Pamorex intends to use the funds, totalling $3.5 million, to finance the balance of its 1988 exploration program and a portion of its 1989 program.

Pamorex and Giant Yellowknife are members of a group of companies led by Pamour Inc. (TSE); Pamorex acts as the group’s exploration arm. Pamour is controlled by Giant Resources of Australia.

Prior to completion of the private placement, Pamour was the major shareholder in Pamorex, with a 40% interest. (Second largest shareholder in the company, with a 19.8% interest or about 3 million shares, was CSA Management.) The share acquisition by Giant Yellowknife gives the group as a whole a 54% interest in Pamorex.

Pamorex earlier this year sold its 50% interest in the producing Bell Creek gold mine near Timmins, Ont., to mine partner Canamax Resources (TSE) for $16.5 million plus a net smelter return of 2.5% from certain claims surrounding the mine area and 1.5% from the optioned Vogel claims.

Adrian Fleming, chairman of Pamorex, told shareholders at the company’s annual meeting earlier this year that the company is seeking another “income producer,” either in or near production.