BRITISH COLUMBIA – Just two weeks after releasing a positive preliminary economic assessment for the Harper Creek copper-gold-silver project, Yellowhead Mining of Vancouver has entered into a $20-million bought deal private placement that will allow it to advance the project. The company will issue 13.8 million units, each of which will consist of one common share and on-half of one common share purchase warrant. A syndicate of underwriters, led by Canaccord Genuity, have agreed to purchase the units. The deal is expected to close near the middle of April 2011.
The PEA outlined a $759-million project that will create an open pit mine and 70,000-t/d concentrator. Mining would occur over 17 years and milling continue for another five years from a low grade stockpile. Using a 0.02% Cu cutoff, the property has a measured and indicated resource of 532 million tonnes grading 0.31% Cu, 0.032 g/t Au and 1.08 g/t Ag. There is also an inferred resource of 117 million tonnes at 0.39% Cu, 0.27 g/t Au and 1.32 g/t Ag.
The Harper Creek property lies 150 km north-northeast of Kamloops, BC. Yellowhead owns 100% of the project subject to a net smelter royalty. Further information is posted at www.YellowheadMining.com.