Private placement gives boost to St. George

The loss is a substantial increase from the loss of $273,094 or 4 cents per share for the previous year. The only revenue reported by the company for the 1988 fiscal year was interest income of $67,625.

A recent private placement in the company’s U.S. subsidiary, St. George Metals, brought about an extraordinary gain of $3,030,841 to the company (for accounting purposes only as all proceeds were received by the subsidiary). When this gain is combined with the loss from operations, St. George Minerals reported net earnings of $2,111,588 or 24 cents a share for the period ended January 31.

Through its U.S. subsidiary, the company has substantial interests in various mining claims in Nevada which are still in the exploration and/or development stage.

However, the private placement will have the effect of reducing the parent company’ ownership in the subsidiary to only 52%, assuming exercise of all outstanding warrants and options.

The proceeds are to be used for the acquisition, exploration and development of mining properties held by the company or those that may be acquired in the future.

Earlier this year, St. George Minerals entered into a joint venture with Reynolds Metals to aid in efforts to explore and develop about one-third of its Nevada precious metals holdings.

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