Rea Gold to fund Bisset mine development

Rea Gold (REO-T) has raised nearly $17 million in equity financing to fund ongoing development at its Bisset gold mine, northeast of Winnipeg, Man.

The private placement, which was arranged with RBC Dominion Securities, Nesbitt Burns and Midland Walwyn Capital, consisted of 14.6 million special warrants priced at $1.05 each.

The underwriters exercised their option and acquired an additional 2 million special warrants. Rea Gold received a total of $16.4 million when the issue closed on April 28.

The former producer is scheduled to pour its first gold by June 30 and is anticipated to produce 80,000 oz. per year by 1998.

Rea also operates the Mt. Hamilton gold mine, in Nevada’s Battle Mountain trend, and recently commissioned the San Gregorio gold mine, in northern Uruguay.

Production at San Gregorio this year is expected to reach 66,000 oz., rising to 70,000 oz. in 1998. The mine has a reserve of 5 million tonnes grading 2.6 grams gold per tonne.