MacMillan eyes private placement (January 05, 2004)

Junior MacMillan Gold (MMG-V) is trying to raise $1 million to fund an ongoing drill program at its Cerro de Oro gold-silver project near Zacatecas, Mexico.

In early December, MacMillan renewed drilling to follow up two earlier phases completed since the summer. Between 15 and 20 reverse-circulation holes are planned, none of which will be drilled deeper than 150 metres below surface, keeping them within the zone of oxidation.

The first five holes are targeting a limestone unit on the eastern side of the 1.6-km-long Santa Rosa trend, where anomalous gold and silver occur in soil and outcrop. The remainder will be stepped-out from holes 1, 3, 7 and 10, which yielded a best result of 167.1 grams silver and 1.85 grams gold per tonne over 12 metres (true width).

The Santa Rosa trend represents the contact between a volcanic/intrusive complex and an older sequence of folded limestones. Both rock types can be mineralized with disseminated gold and silver, and higher-grading veins and replacement zones occur at their contact, which is where small-scale miners had focused their attention.

The non-brokered private placement will consist of 2 million units priced at 50 each. A unit consists of a share and a warrant that can be exercised in the first year of the deal’s closing at 75 and in the second year, at $1. George Brown, president of MacMillan, has agreed to buy 200,000 units to maintain his interest in the company at 10%.

MacMillan has roughly 26.9 million shares issued and outstanding.