Teck and San Paulo to jointventure at Leitch mine

Alberta-listed San Paulo Explorations has announced a $1 million financing through a private placement of 550,000 common shares at approximately $1.82 per share.

“These funds will be used for general corporate purposes,” said President Peter Walker.

According to Walker, an additional $1 million is being raised through flow-through share financing for the Leitch gold mine at Beardmore Ont. In a joint venture with Teck Corp., San Paulo can earn a 50% interest in the Leitch project which was in production for 30 years.

Under an agreement with Middlefield Group, San Paulo will issue shares at 135% of the weighted average stock market price 10 days prior to the funds transfer.

San Paulo says the flow-through financing must be spent by Feb 29, 1988.

“The Leitch exploration program has started with a planned 30,000-ft diamond drilling and 10,000 ft overburden drilling program,” said Walker.

“Originally, $3 million was to be spent over three years. Buth this has been accelerated with $2.2 million being spent over 10 months.”