The proceeds will be used to fund a feasibility study on the Pend Oreille zinc-lead deposit in Washington. Situated 55 miles south of the Cominco zinc smelter at Trail, B.C., the Pend Oreille is a former producing mine which was shut down in 1977.
RFC acquired an option in 1988 to purchase the property for $1.25 million(US). A surface exploration program completed by RFC combined with a review of mine plans and other historical exploration information enabled the company to define reserves of three million tons grading 9.8% zinc and 1.9% lead.
A dewatering program is 75% complete. It will allow RFC to begin an underground exploration and development program designed to further define drill-indicated reserves.
The feasibility study is expected to be completed by the first quarter of 1990. Mill tune-up could begin by the fourth quarter with production following in early 1991, RFC says.
Kerr Addison Mines (TSE), which owns a 44% interest in RFC, maintained its stake by its pro rata participation in the placement of special warrants.
The warrants will rank equally with common equity and will be exchanged for common shares five days after receipt of a prospectus from the Ontario Securities Commission.
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