Glencairn targets flow-through financing

Vancouver — Glencairn Gold (GLJ-V) intends to raise $1.6 million via a placement of 3.6 million flow-through warrants priced at 45 each.

Each special warrant is exercisable, at no cost, into one flow-through share and half a warrant. A full warrant allows the holder to buy a share at 65 for 18 months.

Endeavour Flow Through Fund 2003 will buy 2.2 million of the warrants, whereas insiders will pick up 1.3 million. 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, Ont.

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.