St Andrew replenishes coffers

Faced with a dwindling cash position, St Andrew Goldfields (SAS-T) has raised $3.3 million for its projects in the Timmins camp of northern Ontario.

In early December 1999, St Andrew received a 14-month, $2-million loan from a private merchant bank and completed a $816,500 private placement by issuing 2.3 million shares priced at 35.5 each.

Proceeds will be used to restart the Stock gold mine and carry out a feasibility study on the Taylor mine project.

Also in December, St Andrew negotiated a privately placed flow-through financing. By issuing 1.1 million shares at 40 each, the company raised $450,000, which will be used to explore the property it shares with Holmer Gold Mines (HGM-T). St Andrew can earn a 40% interest in profits generated from mining the upper 100 metres of this deposit by, among other things, completing a bankable feasibility study and financing development work.

The remainder of the flow-through funds will be used to explore properties nearby.

During the nine months ended Sept. 30, 1999, St Andrew incurred a loss of $894,785 (4 per share) on revenue of $5.5 million, derived from custom milling ($4.9 million) and metal sales ($612,403). In the corresponding period of 1998, the loss was $401,519 (2 per share) on revenues of $5 million (100% custom milling).

Revenues and cash flow are expected to receive a boost once operations in Hislop and Stock twps. begin producing at a combined daily rate of 700 tonnes.

As a result, St Andrew expects its Stock mill will once again be operating at full capacity. In late 1999, Exall Resources (EXL-T) cancelled its custom milling contract with St Andrew in favour of Kinross Gold‘s (K-T) Macassa mill.