A private placement has increased Glimmer Resources’ (VSE) issued shares to 2.1 million and raised enough money for the company to maintain its 40% interest in the Beatty-Hislop gold project in northeastern Ontario by funding a drill program.
Glimmer President George Kent says his personal stake in the company has been diluted to about 44% from 50%.
An 8-hole, 10,000-ft. drill program, funded by the placement, is half completed by Hemlo Gold Mines (TSE), the operator and 60% owner. The first hole was drilled under Highway 101 looking for a parallel zone while three other holes were drilled to extend three known zones.
Results from those holes have not been made public, but the hole drilled under the highway was put down first to determine whether an option payment due on that property was warranted. The option payment was subsequently made. Reserves on the property are estimated by Glimmer at just over a million tons grading 0.34 oz. gold per ton. Kent says he believes the potential is good to double that reserve.
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