Siskon secures funds for California projects

Siskon Gold (NASDAQ) has raised US$5 million to finance construction of the San Juan and Big Horn projects in California.

The company sold to Vengold (VSE) US$2 million in convertible shares at US$2.56 per share, as well as a US$3-million note which is convertible into common stock at the same price.

Vengold also received warrants to buy 2 million shares of Siskon at US$3.50 (exercisable for 13 months), and warrants for another 2 million shares at US$4 (exercisable for two years).

Siskon can raise a total of US$20 million through the sale of convertible debt, equity and warrants.

The San Juan mine is already producing gold, and contains an estimated 257,000 oz. Annual output is projected at 40,000 oz. at a cash cost of US$195 per oz.

The Big Horn contains about 188,000 oz. in reserves, as well as 101,000 oz. in the drill-indicated category.

As of October, Siskon had 9 million shares outstanding.

If Vengold exercises all of its warrants, it will hold a 34% interest in the company; it currently holds about 16%.