A placement of 3.3 million special warrants has raised gross proceeds of $16.6 million for Orvana Minerals (TSE). The warrants are exchangeable for shares at no additional cost.
Orvana will receive half the proceeds when it closes its purchase of the Don Mario copper-gold property in Bolivia (T.N.M., Nov. 20/95). The other half will be placed in escrow until the Ontario Securities Commission gives final approval for the shares to be issued.
The Don Mario property has two deposits, one with 1 million tonnes grading 13 grams gold per tonne, and another with 4 million tonnes grading 2 grams gold and 2% copper. Reserve estimates are preliminary.
Meanwhile, Battle Mountain Gold (NYSE) has taken an option to earn a 51% interest in a Chilean property owned by Orvana and a private company, Exploraciones Mineras NCE. Battle Mountain must spend US$375,000 and, after Orvana has matched that sum, fund all exploration and development up to commercial production. After that time, Battle Mountain will have a 75% profit interest until it has recovered its costs, and a 51% interest thereafter.
In accordance with the agreement, Battle Mountain has bought 56,052 shares of Orvana for US$225,000 and will buy another US$150,000 in February.
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