Glencairn Gold targets flow through financing

Vancouver — Glencairn Gold (GLJ-V) is aiming to raise $1.6 million via a placement of 3.56 million flow through warrants priced at $0.45 each.

Each Special Warrant is exercisable, for no additional consideration, into one flow-through common share and one-half of a warrant. A full warrant allows the holder to buy a shares at $0.65 for 18 months.

Endeavour Flow Through Fund 2003 will purchase 2.23 million of the warrants, while insiders will pick up 1.33 million of the units. Some 178,000 warrants will be issued to Strand Securities as a commission on the deal. The private placement is expected to close by Sept. 5.

The funds will be kept in escrow pending the closing of Glencairn’s proposed merger with Black Hawk Mining (BHK-T). The money from the financing will be used to explore Black Hawk’s Vogel gold property in Timmins, Ontario.

Under the merger, Glencairn will take over the larger Black Hawk for shares at a rate of one of its own shares for every three of Black Hawk. In the end, Black Hawk shareholders would hold 69% of Glencairn, but Glencairn’s officers would retain their seats.