Magnesium Alloy raises funds for Kouilou

Toronto-based Magnesium Alloy (MGAC.U-C) has closed a financing deal relating to its magnesium project near the coast of the Republic of Congo.

The brokered private placement consisted of 1.7 million units, which sold for gross proceeds of US$350,000. Each unit consists of one Magnesium Alloy share and one-half share purchase warrant, with each warrant entitling the holder to buy another share for US20 cents before Dec. 18, 2000. As well, agent Groome Capital received compensation warrants to buy 175,000 shares at US20 cents before the same date.

Since the summer, Magnesium Alloy has been carrying out a prefeasibility study for the development of an integrated hydroelectric, mining and magnesium refining operation on its Kouilou licences. The study, due in March, is considering the construction of a 56,000-tonne-per-year plant to produce high-purity magnesium and magnesium alloys.

The company recently completed a 600-metre confirmation drill hole at Mengo, 15 km from the proposed magnesium plant site at the port city of Pointe-Noire. A 50-metre interval (from 484 metres) of the principal magnesium mineral carnallite also contained noticeable bischofite (a higher-grade magnesium mineral). Core samples will be analyzed for trace elements, and the whole core, used for the pilot testing.

Meanwhile, in the Magnesium Alloy boardroom, Marcel Rigny has taken Steven Dattels’ place as director. An engineer specializing in hydroelectric projects, Rigny also acts as the Honourary Consul in Canada for the Republic of Congo.