No matter what a company mines or where, investors are practically throwing money at companies that are asking for it. In the first eight days of February, CMJ found six companies that were raising a total of over $600 million.
ELDORADO GOLD of Vancouver completed a Cdn$186.3 million financing. It plans to use the money for the acquisition of late-stage development gold properties in China as well as exploration and development at its properties in Turkey and Brazil. (www.EldoradoGold.com)
NEW GOLD of Vancouver grossed a little over $75.0 million in its latest bought deal financing, substantially more than the $50.4 million it hoped to raise. The net proceeds will finance underground and surface exploration programs and development of the New Afton and Ajax copper-gold projects near Kamloops, B.C. (www.NewGoldInc.com)
NOVAGOLD RESOURCES of Vancouver sold 13.0 million common shares for a total of $164 million. Proceeds of this offering will be used to fund exploration and construction at the Rock Creek gold project (Alaska); to complete final feasibility studies for both the Galore Creek gold-copper (B.C.) and the Donlin Creek gold (Alaska) projects; to fund the 2006 option payment due with respect to the Galore Creek project; to fund exploration on the Ambler copper-zinc-silver project (Alaska), to fund exploration on NovaGold’s other projects and for general corporate purposes. (www.NovaGold.net)
SKYE RESOURCES of Vancouver anticipates raising $21 million this month. The company is advancing its Fenix nickel laterite project in Guatemala. INCO LIMITED has the right to participate in this financing to maintain its 12.4% equity interest in Skye. (www.SkyeResources.com)
SXR URANIUM ONE of Toronto has more than doubled the size of its financing to US$149 million from US$65 million. The proceeds will be used for development of the brownfield Dominion uranium project in South Africa. Production is expected in 2007. (www.Uranium1.com)
US GOLD of Lakewood, Colorado, boosted its recent offer to US$75.15 million from US$50.4 million, thanks to an over-allotment. Part of the money is earmarked for work at its Tonkin Springs gold mine in the Cortez Trend. (www.USGold.com)