Moydow funds exploration

To finance exploration of its Ghanaian gold assets, junior Moydow Mines International (MOY-T) is raising $5 million via a private placement.

The financing, brokered by Loewen, Ondaatje, McCutcheon, will consist of special warrants priced at $1.70 apiece. Each special warrant will be exchangeable into one share and half a warrant, with each full warrant entitling the holder to buy another share for $2.25 over 12 months. Closing is anticipated for Nov. 26.

Most of the proceeds will be used to fund Moydow’s participation in its 56%-owned Ntotoroso gold project in Ghana. Normandy Mining (NDY-T) can earn a 50% stake before 2002 (T.N.M., Oct. 11-17/99).

The partners have released the remaining results from a drilling campaign on Zone E — work which included 38 diamond and reverse-circulation drill holes and 143 shallow rotary holes.

The two are now launching a US$1-million, 7,000-metre winter drilling program, to be completed by March. New targets include areas 200 km east of and 2 km south of Zone E. Normandy is funding the program, with Moydow serving as operator.

West of the capital, Accra, Moydow holds a 31% interest in the Wassa open-pit gold mine, which has so far produced 70,000 oz. since its first pour in January. The mine is forecast to produce an additional 20,000 oz. before year-end. The remainder of Wassa is held by Irish-listed Glencar Mining (59%) and the Ghanaian government (10%).

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