Eldorado tops up treasury

A private placement of up to 3.4 million special warrants is expected to raise more than $14 million for junior gold producer Eldorado (TSE).

Each unit is priced at $4.15 and converts, at no additional cost, into one common share.

Proceeds will fund an engineering study into the expansion of the Colorada mine, as well as further work on the Trinidad project.

Both gold properties are in Mexico, where Eldorado hopes to acquire and develop additional ground.

Situated in Sonora state, the Colorada is an open-pit, heap-leach mine which is expected to yield 30,000 oz. in 1995. Annual production is scheduled to rise to 100,000 oz. by 1998.

The mine produced 19,900 oz. in 1994 at a cash cost (net of silver revenue) of US$191 per oz. The cash costs in 1995 is expected to total US$189 per oz.

At the Trinidad project, in Sinaloa state, two zones host a minable resource estimated at 2.8 million tons grading 0.062 oz. per ton.

Eldorado can earn a 51% interest from Almaden Resources (VSE) by conducting a feasibility study.

Eldorado earned US$1.06 million in 1994 (or about US8 cents per share) on revenue of US$7.6 million.