Financings totaling US$27.9 million will enable Canyon Resources (NASDAQ) to advance two gold projects in the western U.S. and continue drilling three gold discoveries in Nevada, Montana and the Dominican Republic.
Canyon recently sold US$22 million of subordinated convertible notes with the assistance of First Marathon (USA) and Robertson, Stephens and Co. In a separate transaction, it arranged a US$5.9-million gold loan with N.M. Rothschild & Sons.
The loan is to be repaid from production at the Kendall gold mine by the end of 1994. The open pit, in Fergus Cty., Mont., produced 10,663 oz. gold and 7,025 oz. silver during the first quarter.
The company also owns the Briggs deposit in the Panamint Range of southeastern California. A drill-defined minable reserve of 21 million tons grades 0.031 oz. gold per ton and several mineralized areas are considered to have potential to increase reserves.
Briggs is at the engineering and permitting stage, based on a proposal to develop it as an open-pit, heap-leach mine.
Situated near Lincoln, Mont., the McDonald gold project is also being engineered and permitted as a proposed heap-leach operation. Canyon has a 27.7% interest, with the remainder held by Phelps Dodge Mining.
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