U.S. Report Coral completes European financing

European investors have bitten off a chunk of Coral Gold (TSE) through the private placement of 950,000 shares at $2.05 per share. Net proceeds, after paying a finder’s fee of $129,875 to European finance house, Gaston Coblentz & Co., will be used to continue the exploration of various Nevada properties and to bolster the company’s working capital position.

Amax Gold (NYSE) recently began a deep drilling program on Coral’s Robertson gold property in northern Nevada. Amax will be spending about US$1 million on the property, focusing primarily on testing for deep-seated gold deposits below a surface oxide deposit which Coral was unable to mine profitably.

Amax can earn a 70% interest in the property by spending US$11.5 million on a 4-phase exploration and development program.