Pangea raises funds; explores Ontario, Africa

A private placement worth $7 million has been arranged for Pangea Goldfields (CDN). The company received, from European and North American institutional investors, $4.6 million and expects to receive the remainder before mid-April.

Pangea is currently exploring for gold near Matheson on the Fenn-Gibb property. The company is completing a 50,000-ft. drill program with three drill rigs. Gold mineralization has been identified over a strike length of 1,200 metres and Pangea is completing infill drilling on 50 metre centres. Assay results are expected in the latter part of April.

Also in Ontario, Pangea holds a 100% interest in 55 claims contiguous with Placer Dome’s (TSE) Musselwhite gold discovery, north of Pickle Lake. Pangea plans to drill the claims in the second half of 1994.

Pangea is also exploring for gold in the Lake Victoria gold field district of Tanzania. The company holds rights covering about 4,500 sq. km. Airborne geophysical data is being interpreted while detailed geochemical surveys are nearing completion.

Placer Dome has outlined a resource of 1.5 million oz. gold on a property located 500 metres north of Pangea’s property boundary. (However, in its 1991 annual report Placer noted that it was unable to extend an exploration agreement with the Tanzanian government and the agreement expired in February, 1992.) Pangea plans to start drilling their property later in June. The company has placed 2 million units with each unit consisting of one common share and a half common share purchase warrant. Each full common share purchase warrant will entitle the holder to purchase a common share for $3.75 for a period of 12 months.

As a result of the private placement, Pangea will have almost 12.8 million shares outstanding, or just over 16.4 million on a fully diluted basis. Following the financing, Pangea will have $11.5 million in its coffers and should all warrants be exercised, the company will receive an additional $7.8 million over the next 12 months.