DRX Inc. acquires McFinley interest

A new shareholder may soon be making its presence felt at Toronto- based McFinley Red Lake Mines.

An agreement has been signed between drx Inc. of Denver, Colo., and Alexandra Mining Co. (Bermuda) whereby drx will purchase from Alexandra 800,000 units of McFinley in return for about 4.9 million common shares of drx. Each McFinley unit comprises one share and one warrant enabling the holder to acquire, by June 1, 1989, a McFinley share at $7.75(C).

Exercise of the warrants together with the McFinley shares would give drx an almost 20% interest in the former’s outstanding share capital as enlarged by the exercise of the warrants.

McFinley’s main mining asset is its wholly-owned 30-claim gold property in Bateman Twp. in northwestern Ontario. The company last year increased its ownership in the project from 50% to 100% using the proceeds of a private placement with Alexandra.

McFinley reports it is about to start a bulk sampling test at the Red Lake property prior to the commencement of full-scale mining this year. Drill-indicated reserves on the property were reported last year to be 890,000 tons grading 0.19 oz gold per ton.