Junior American Bullion Minerals (VSE) has shelved plans for a brokered private placement of 2.5 million units at $2 each, pending completion of independent engineering reports and improved market conditions.
Proceeds from the canceled placement were to be used on the Red Chris porphyry copper-gold project in British Columbia.
The company is now planning a private placement of up to 500,000 units at $1.28 per unit. The units will include one share and half a one-year warrant exercisable at $1.28.
Proceeds from the new placement, totaling up to $640,000, will finance an independent engineering evaluation of Red Chris and property payments of $243,000.
The company can buy an 80% interest in the property from Falconbridge and Norcen Energy by completing the $243,000 payment and issuing 660,000 units. Teck (TSE) retains a 10% participating and a 10% carried interest. The major can boost its interest to 55% by providing project financing after completion of a feasibility study, leaving American Bullion with a 45% carried interest.
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