American Gem (TSE) has completed a $7.3-million Euroequity offering. The placement, consisting of 1.5 million shares at $4.88 per share, was arranged by IBK Capital, a Toronto-based investment banking firm.
Proceeds will be used to buy Crystal Research, a California-based company that has developed a process for heat-treating sapphires from American Gem’s Montana properties. (Sapphires have traditionally been heat-treated to enhance their value.)
Proceeds will also be used for continued development and payments on the Montana properties.
The company’s holdings now total more than 40,000 acres. Test operations have been made on the Dry Cottonwood Creek property, and the first phase of work will be completed on the Eldorado bar property within 3-4 weeks. Testing on the Gem Mountain sapphire property is to begin shortly.
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