For those who care...SKV is trading in the 40 cent range now. Doing a financing and will do lots of drilling on their property. Not the same league as VIA (yet or maybe never), however, if they do keep expanding the mineralization then you never can tell. A calculated gamble??? Release below.
Skygold arranges $2.09-million equity financing
2005-07-18 08:16 ET - News Release
Mr. Doug Fulcher reports
SKYGOLD ARRANGES $2.09 MILLION PRIVATE PLACEMENT TO CONTINUE DRILLING ON SPANISH MOUNTAIN
Skygold Ventures Ltd. has arranged both a brokered and a non-brokered private placement to raise total gross proceeds of up to $2.09-million. The company will issue 2.25 million flow-through shares at a price of 40 cents per share and 3.4 million non-flow-through units at a price of 35 cents per unit. Each non-flow-through unit will consist of one common share and one-half transferable share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share for a period of two years at a price of 50 cents.
Pacific International Securities Inc. and Leede Financial Markets Inc. will act as the agents on a portion of this offering. The agents will receive a commission equal to 8 per cent of the gross proceeds from the sale of their portion of the offering and they may elect to receive the commission in either cash and/or units at a deemed price of 35 cents per common share unit. The agents will also be granted a non-transferable warrants equal in number to 12 per cent of the number of units sold by them. The agent's warrants will entitle them to purchase one additional common share for a period of two years from the closing at an exercise price of 40 cents in year one and 55 cents in year two. Proceeds from the offering will be used to finance further exploration on the Spanish Mountain property and for general working capital. An 8-per-cent finder's fee in cash and/or shares may be paid on the non-brokered portion of this private placement.
The company has also negotiated a private loan for the amount $200,000 from three separate investors. The loans are for a period of one year, bearing an interest rate of 12 per cent per year. Pursuant to TSX Venture Exchange policies, the company has also agreed to pay the lenders a total of 100,000 bonus shares at a deemed price of 40 cents per share as consideration for the loan.
Exploration crews have now mobilized to the Spanish Mountain property to begin the next phase of work. Chris Lee of SRK Consultants has been contracted to carry out a structural interpretation on the property and LDS Drilling is expected to mobilize the diamond drill to the property within the next 10 days. The Spanish Mountain project is a joint venture with Wildrose Resources Ltd. in which Skygold has a 70-per-cent participating interest and Wildrose has a 30-per-cent participating interest.
We seek Safe Harbor.