Western Quebec completes funding

Financing has been arranged for the purchase of the Eagle River gold project near Wawa, Ont.

Western Quebec Mines (TSE), which is acquiring the project from Hemlo Gold Mines (TSE), completed a private placement of 2.2 million special treasury warrants and 3.1 million special secondary warrants for an aggregate net consideration of $6.2 million and $3.9 million, respectively. Each treasury warrant is convertible to one common share of Western Quebec at $3 per share. Each secondary warrant is convertible to one common share of Central Crude at $1.35 per share. (Both types of warrants can be exercised until Feb. 23, 1995.)

The shares will be sold by Western Quebec from its control bloc of Central Crude (TSE), which has a 40% interest in Eagle River.

(In the deal with Hemlo Gold, which was to have closed March 2, Western Quebec acquires both Hemlo Gold’s 60% interest in Eagle River and its 48% stake in Central Crude.)

The transactions have yet to be approved by regulators.