Junior companies active in Quebec; Lynx

Flush with cash after a series of recent financings, several juniors with ties to Quebec are gearing up for grassroots exploration work.

– McWatters Mining (MCW-T) affiliate Maude Lake Exploration (MAU-M) raised $934,000 by offering units priced at $1,000 each. One unit comprises 5,000 flow-through shares at 16 each and 1,250 regular shares at 16 each, and every share is accompanied by a warrant exercisable at 21 before April 30, 2002.

Proceeds are earmarked for exploration at Maude Lake’s Comtois and NewBid properties in Quebec.

At Comtois, the company has identified a resource of 705,801 tonnes grading 8.43 grams gold per tonne. Also, a fall stripping program has uncovered new zones of gold mineralization several hundred metres west of the zones previously known to exist. Follow-up drilling is now under way.

The NewBid property is 2 km east of McWatters’ Sigma-Lamaque complex and hosts three gold showings.

– In December, Virginia Gold Mines (VIA-T) completed a $500,000 private placement with CMP 2000 II Resource at a price of $1 per share. Proceeds will be spent at several projects in Quebec, including: Fosse du Labrador (platinum-palladium); Payne Bay (nickel); Poste Lemoyne (gold); and Riviere Annie (nickel).

– Toronto-based Dumont Nickel (DNI-V) carried out two financings: $461,000 through a prospectus offering in Quebec at a price of 20 per share; and $100,000 through an Ontario private placement of units priced at 20 apiece. Each unit consists of a share and a half-warrant, with each full warrant entitling the holder to buy another share for 30 within one year. (This financing is in addition to a previously announced private placement of $477,500, completed in December.)

Dumont is active at its diamond property in the Torngat region of northernmost Quebec. The junior plans to report the results of microprobe analyses of heavy-mineral concentrates from five dykes, completed in mid-January, and of a caustic fusion analysis in mid-February.

As well, Dumont is undertaking an airborne magnetic survey of its diamond exploration properties in the James Bay Lowlands, where the company has staked 20 claim groups covering circular magnetic anomalies. A drilling program will begin there soon.

Mishibishu Gold (MGO-V) can earn a 50% interest in six of those 20 claim groups by immediately spending $35,000 on the airborne magnetic survey, $300,000 on drilling by June 30, 2001, and a further $500,000 by June 30, 2002.

– Montreal-based Freewest Resources Canada (FMR-M) completed three private placements in December for gross proceeds of $1.3 million.

The lion’s share of the financing came from an offering of 982.5 units priced at $1,000 apiece. Each unit comprises 3,600 treasury flow-through shares at 25 per share, 400 regular shares at 25 per share, and 4,000 warrants exercisable into a single share at 35 until May 2002.

Proceeds will be used to explore Freewest’s wholly owned Clarence Stream gold project in New Brunswick, as well as the Bermuda, Moshkinabi and Folson Lake platinum-group-metal projects in eastern Canada.

Drilling will soon begin at Clarence Stream, where surface sampling has outlined three mineralized zones over a 2-km strike length.

– In Quebec’s Belleterre area, Rouyn-Noranda-based Loubel Exploration (LBX-M) has acquired options on three properties which the junior considers to have untapped platinum and palladium potential.

Loubel can acquire the Kelly Lake nickel-copper deposit from Moneta Porcupine Mines (ME-T) by completing the following over four years: an expenditure of $975,000 on exploration; cash payments totalling $45,000; and the issuance of 350,000 shares and 350,000 warrants.

Loubel can then acquire an adjoining 11-claim property from a private company by spending $400,000 on exploration, issuing 300,000 shares and paying $30,000 in cash.

In a third deal, Loubel can buy a nearby 57-claim property from former mining company Lyon Lake Mines for 200,000 shares and a 1% net smelter return royalty.

Loubel has also carried out a 4,000-metre program of winter drilling on its Lemoine polymetallic property, near Chibougamau. Results have not been released.

Last summer, Loubel raised $750,000 by issuing 5 million shares at 15 each and 2.5 million warrants, each of which allowed the holder to buy another share for 20 within one year.

– Sainte-Foy-based Robex Resources (RBX-M) reports that 448,000 warrants have been exercised at a price of 29.25 per share.

The money will be directed towards Robex’s US$600,000 acquisition of the Atzcala silver mine on the Vianey property in Mexico’s Guerrero state.

There, the company plans to take a 9,021-tonne bulk sample grading 1,878.5 grams silver per tonne, 22.44% lead and 4.42% zinc. Robex will also carry out underground drilling to test depth extensions of mineralized structures and evaluate another 22-metre-thick manto zone.

Robex must make payments under the following schedule: US$50,000, already paid; US$125,000 on Feb. 28, 2001; US$100,000 on Aug. 31, 2001; US$50,000 on Nov. 28, 2001; US$100,000 on Feb. 28, 2002; and US$175,000 on Aug. 30, 2002.

Meanwhile, in Mali, Robex is evaluating the Dialaki-La Corne placer-gold property.