VSM Exploration, which will have 10.3 million shares outstanding at the conclusion of this latest deal, is a subsidiary of MSV Resources (ME), which until the latter half of 1988 was a partner with Placer in the Eastmain gold project in northern Quebec.
Placer sold its 51% interest in the Eastmain project to MSV for $5.2 million: $2.2 million plus $3 million to be spent on exploration work by VSM. Exploration plans by VSM, which raised $1 million in an earlier flow-through offering, are already in the works. Company spokesman Mario Caron said VSM has an option to earn a 50% interest in a 54-property package in Quebec in return for spending $8 million on exploration work.
Four major projects in northwestern Quebec have been targeted by VSM, the Gand, Lesueur and Lesperence properties (all gold plays), and the Grevet property, a base metal play. Caron said drilling is under way on the Gand property.
MSV recently arranged a $6.5- million financing package with Northgate Exploration (TSE), which included $1.3 million for a private placement of MSV shares at $1.50 per share.
Results of a feasibility study for the Eastmain project are expected to be released in the near future.
]]>
Be the first to comment on "Placer Dome helping to fund VSM plans"