Oracle Resources has signed an agreement with First Exploration Fund 1986 for issuance of 166,667 flow-through common shares at $3 per share. The offering is underwritten by Merrill Lynch Canada and Dominion Securities Pitfield.
The subscription price of $500,000 is to be used for exploration of two of Oracle’s four mineral properties — the Opapimiskan Lake and Agutua Arm properties — in the Pickle Lake area of northwestern Ontario.
The Opapimiskan Lake property covers multiple gold zones associated with iron formation and is adjacent to the Musselwhite property held by a consortium including Dome, Inco, Esso and Lacana on which a number of gold deposits have been reported in association with the same iron formation. Drilling is starting immediately and a minimum of 10,000 ft will be drilled to delineate the gold zones.
The Agutua Arm property covers several high grade gold-silver and base metal prospects which have had limited previous exploration. Drilling will start in October- November and will involve a minimum of 3,500 ft.
The $500,000 to be provided by First Exploration Fund must be spent by Feb 28, 1987. Accordingly, Harry J. Hodge, president, says Oracle will not be in a position to make the expenditures provided for in a subscription agreement dated Feb 10 under which Van Horne Exploration was to have provided $1,250,000 in flow-through funds by Dec 31. The Van Horne subscription agreement will be extended by one year.