Sudbury Contact raises exploration funds

Junior Sudbury Contact (TSE) has completed a flow-through private placement worth $1 million.

The company will issue 166,666 shares to associated company Agnico-Eagle Mines (TSE). Sudbury Contact will use the funds to explore properties in Ontario and Quebec and to flow through to Agnico-Eagle tax benefits associated with the expenses.

Proceeds will be used to complete a $1-million, 50,000-ft. drill program on the Victoria Creek gold project in the Kirkland Lake-Larder Lake camp. Two previous programs outlined mineralization with a strike length of 4,600 ft., to a depth of 1,500 ft. The zone contains a geological inventory of 1.25 million tons averaging 0.12 oz. per ton. The inventory is based on widely spaced holes from the first two drill programs.

As a result of the flow-through private placement, Agnico will own 19.5% of the outstanding shares in Sudbury Contact, up from 18.3%