Canadian financiers Ned Goodman and Robert McEwen demonstrated an astute sense of timing last week by participating in financing deals that raised $1.5 million for exploration at a Visible Gold Mines Inc. (TSX: V.VGD, Stock Forum) project in Quebec.
On October 28, Visible Gold said it had closed a private placement comprised of 8.1 million “flow through” shares at $0.08 per share ($650,040) and 14.5 million units at $0.06 per unit ($875,000).
Each unit is comprised of one common share and a common share purchase warrant entitling the holder to acquire an additional share of Visible Gold mines at $0.10 for 18 months from the date of closing.
The placees included McEwen company McEwen Mining Inc. (TSX: T.MUX, Stock Forum), which subscribed for 8.3 million private placement units ($500,000), and a subsidiary of Ned Goodman’s Dundee Corp. (TSX: T.DC.A, Stock Forum), which subscribed for $1 million worth of flow through shares and units.
McEwen and Goodman are both legends in the Canadian mining and exploration space.
Their decision to fund Visible Gold looked like a savvy move after early exploration results from the company's 167 EXTENSION project near Chibougamau, Quebec, drove its stock price as high as 13.5 cents on Tuesday.
The shares later closed unchanged at 12 cents after 2.2 million shares had changed hands, leaving Visible Gold with a market cap of $6.9 million, based on 57.3 million shares outstanding.
The 167 EXTENSION project is 100%-owned by Visible Gold and covers 955 mining claims and 505 square kilometres. It is located 320 kilometres north of Chibougamau city in the James Bay region in the heart of Plan Nord territory.
Plan Nord was launched to develop Quebec’s north and includes construction of a 243-kilometre all-season road, linking Stornoway Diamond Corp.’s (TSX: T.SWY, Stock Forum) Renard Diamond project to the provincial highway network.
Visible Gold has acquired the available mining rights along the new road in order to gain access to new outcrops and strippings generated by the road construction. By adding mining claims, the company wound up with full ownership of what is dubbed the 167 EXTENSION Project.
The company said work crews have discovered numerous rusty and angular boulders in the mid section of the project. It also said a number of high grade boulders were initially found along a 20 kilometre long east-west volcanic belt. Sample results included 142.5 grams gold per tonne, 22.2 grams silver, 0.61% copper and 0.02% zinc.
Following the receipt of all sample results, Visible Gold said its geological team will review all results and establish an exploration program in order to define the bedrock sources of these mineralized boulders.
Readers should note that the flow-through shares and units were issued on a best efforts basis through Maison Placements Canada Inc., which acted as agent. Maison Placements exercised an over-allotment option to increase the size of the private placement.