Its joint-venture agreement terminated on the Bateman Twp. project at Red Lake, Ont., McFinley Red Lake Mines now holds a 100% interest in the property.
McFinley, which had a 50% interest in the project, purchased the other 50% from partners Phoenix Gold Mines and The Coniagas Group.
McFinley’s 100% property interest in the 30 claims is subject only to a 10% net profit entitlement that begins once McFinley has recovered all of its costs, including the joint-venture buy-out price, and is limited to $5 million.
The company’s purchase price of $5 million was financed through the placement of 800,000 shares to Alexandra Mining Co. (Bermuda) at $6.25 per share. Alexandra has been granted 2-year warrants to purchase an additional 800,000 shares at $7.75 per share, McFinley President W.W. Cummins reports.
The company’s underground preparation for its bulk test is ahead of schedule and proceeding on a one-shift-per-day basis, Mr Cummins reports. Acquisition of the mill equipment is near completion. McFinley reported earlier this year drill-indicated reserves of 890,000 tons grading 0.19 oz gold per ton.
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