Eagle Hill gets the money it needs to grow

Eagle Hill Exploration (EAG-V) will soon have the funds it needs to sure up its recent acquisition of Noront Resources’ (NOT-V) Windfall Lake gold project in Quebec.

The company announced that it has closed a private placement that will bring a total of $3.175 million into its coffers.

The bulk of the deal came from an issuance of common share units — $1.5 million from 10¢ per unit made up of one share and one warrant with a strike price of 20¢ — and flow through units — $1.5 million priced 15¢ per unit made up of one flow through common shares and a warrant with the same strike price as the common share units.

The company has already closed the first tranche of its financing the company by issuing 1.75 million units and raising $175,000.

Money from the first tranche will go towards working capital, while the remaining $3 million will go towards acquisition and development of Windfall Lake — which has been freshly minted as the company’s flagship property.

The Vancouver-based company was in dire need of such a project as it risked losing its listing on the TSX Venture Exchange for not having a “qualifying property”.

The situation arose after the company was reduced to just a 3.5% stake in the MAC property when the project was sold by its majority interest War Eagle Mining (WAR-V) to VM Exploration in mid-August.

But with an option to earn up to a 100% interest in Windfall Lake — subject to a 2% net smelter royalty — the company will be able to meet the Venture Exchange’s requirements.

The deal, which was announced in late July, stipulated that Eagle Hill had to have an equity financing done for at least $1.5 million by mid-October and pay Noront $400,000.

There is also a series of exploration expenditure target that must also be met over the next two years at the project.

Windfall Lake proved to be a bit of an enigma for Noront. While the site returned some standout intercepts — highlighted by 4.8 meters grading 52.3 ounces per ton and 3.2 metres grading 4.2 ounces per ton — overall results were inconclusive, keeping Noront from completing a resource estimate.

In all, the project has seen 330 historic holes drilled and comes with a 1,400 metre underground ramp.

 The property is situated in the Chibougamau Mining District in Urban Township of the Abitibi region in Quebec.

In Toronto on Aug. 31 Eagle Hill’s shares were off 3% or half a penny to 14¢ on 178,000 shares traded.