Eagle Hill Exploration (TSXV: EAG) owns 100% of the Windfall Lake gold property in Val-d’Or, Que., after acquiring Noront Resources’ (TSXV: NOT; US-OTC: NOSOF) 25% interest in the project for $5 million and 25 million shares.
The purchase, completed on Aug. 15, was made possible with the closing of the previously announced private placements, with Southern Arc Minerals (TSXV: SA) and Dundee (TSX: DC.A) providing $12 million in proceeds.
Southern bought 97.7 million units priced at 7.5¢ apiece for $7.3 million, while Dundee invested another $4.7 million in 63.3 million units, pushing its 18.8% stake in Eagle to 26.2%. Southern owns a 26.2% interest in the junior explorer. Each unit consists of one share and a half warrant, with a whole warrant allowing a holder to buy another Eagle share for 10¢ within four years.
The move to consolidate its interest has given Eagle total control of the project and has removed Noront’s buyback option, royalties and an $11.9-million preferential payment Eagle would have owed Noront once production started. Freed of these restrictions, Eagle can focus on drilling and exploring its flagship 124 sq. km property. It has $6.5 million left from the placements to fund a new drill program, says Rhylin Bailie, the company’s vice-president of communications.
Eagle Hill intends to drill 20,000 metres this month to test the limits of the known zones and “get a sense of the overall size and potential of the property,” Bailie says. The program aims to expand and upgrade the resource base at the underground gold deposit at Windfall. So far the company has outlined 538,000 oz. gold grading 10.1 grams in indicated, and another 822,000 oz. at 8.8 grams gold in inferred.
In May the company reported the final assay results from its 10-hole, 4,000-metre winter program, which focused on Windfall’s main gold zone and extending several other known zones on the property. Highlights from the program included 12.4 metres of 288.5 grams gold and 5.5 metres of 22.1 grams gold in the main zone, as well as 43.7 metres of 5.4 grams in an eastern extension of the deposit.
Meanwhile, Eagle Hill has changed its board and management following a recent annual general meeting and board meeting. Eagle’s directors now include: John Proust, Eagle’s chairman and interim CEO; Michael Andrews, interim president and current president of Southern Arc Minerals; David Christie; Carl Calandra, who provides legal counsel to Dundee; and Robert Parson. Leaving the board were Brad Kitchen, Eagle’s former president and CEO, and Gerald Ruth.
Along with Bailie, the modified board appointed Brian Richardson as interim chief financial officer and promoted Eagle Hill’s chief geologist, Jean-Philippe Desrochers, to vice-president of exploration. Celeste Curran joined as vice-president of corporate and legal affairs, and Eileen Au became corporate secretary. Bailie says the board is looking to permanently fill the CEO, president and CFO positions.