VANCOUVER – Eagle Hill Exploration Corp. raised $12 million by way of private placement with which to buy out Noront Resources, its 25% partner at the Windfall Lake project 100 km east of Lebel-Sur-Quevillon, QC, and launch a drilling program on the property. The agreed on price was $5 million plus 25 million Eagle Hill common shares.
Southern Arc Minerals invested $7.32 million to acquire 97.65 million units of Eagle Hill, and Dundee Corp. invested $4.68 million to acquire an additional 62.35 million units. The units were priced at $0.075 each. Each unit comprises one common share of Eagle Hill and one half share purchase warrant, with each whole warrant entitling the holder to acquire a further common share of Eagle Hill at a price of $0.10 per share for a period of four years. Southern Arc and Dundee now each hold a 26.14% interest in Eagle Hill.
Eagle Hill is now the sole owner of the Windfall Lake gold deposit. The transaction also removed Noront’s buy-back option, royalties and future payments.
The Windfall Lake deposit has resources of 1.66 million indicated tonnes grading 10.05 g/t Au or 538,000 oz, plus 2.91 million inferred tonnes at 8.76 g/t Au or 822,000 oz. The property has a 1,450-metre underground ramp thanks to previous exploration efforts.
Additional details are posted at EagleHillExploration.com.