TerraGold, with its head office in Musgrave Harbour, will be the first junior company to go on the Newfoundland stock savings plan, proclaimed by the provincial government last November.
The plan provides investors with the opportunity to earn tax credits and grants totalling up to 50% of the initial cost of shares purchased. The stocks must be held for a 2-year period to be eligible.
The company hopes to raise between $2-$4 million through a public share offering, currently in the works. Agent for the offering is Scotia Bond Company Ltd.
The funds will be used for exploration of two Noranda properties, one on Glover Island at Grande Lake (reached by helicopter from Pasadena) and the other, called the Pine Point property, situated 10 km north of Springdale, Nfld.
TerraGold has the right to earn a 50% interest in the two Noranda properties, both of which host significant gold showings.
The company will also explore its 100%-owned Catchers Pond, Flat Water Pond, and Little Bay Mine properties, located on the Baie Verte Peninsula. These three properties were acquired recently from Jascan Resources (TSE) and Atlantic Goldfields (COATS).
The 24-claim Nerepis property in the Saint John area of New Brunswick will also be explored. A 1,000-m diamond drilling program has been recommended to evaluate gold occurrences on the Nerepis claims.
A.C.A Howe International will be retained as consulting geologists to provide property management, geological assessment and day-to- day operations management for TerraGold.
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