Trading in Madeleine Mines (TSE) was halted recently after the company said it is planning to raise $5 million for the development of a treatment facility designed to produce copper and nickel by electrowinning.
According to Madeleine, the location of the proposed hydrometallurgical treatment centre is still under review but it considers Winnipeg to be a leading contender.
The Platinum Partners, a limited partnership, has agreed, subject to regulatory approval, to provide funding for certain development and research expenditures.
Under the agreement, the limited partnership will receive, among other things, the benefits of the applicable tax writeoffs from any expenditures and the right to receive a warrant exercisable at $5 for every $5 spent on the project. President Pat Sheridan was unavailable to discuss the agreement. But the company says the warrant is to be exercisable during the period that the limited partnership has an investment in Madeleine Mines. The drawdown by Madeleine is at its option and the company expects to draw down approximately $1 million in the current fiscal year.
Before the release was issued, soft precious metal prices and a lawsuit relating to the Madeleine’s Lac des Iles palladium/platinum project near Thunder Bay, Ont., sent the issue to a low of $2.80 from a high of $6.50.
Be the first to comment on "Madeleine Mines plans to raise $5 million for treatment centre"