MANITOBA – Crowflight Minerals of Vancouver is making a $30-million private placement, part of which is earmarked for acquiring mining equipment and restarting the Bucko Lake nickel mine in the Thompson nickel belt near Wabowden. Part of the money is also to be spent to pay creditors and retire a portion of the company’s convertible debenture.
Crowflight plans to issue up to 600 million units at a price of $0.05/unit. Each unit is comprised of one common share and a purchase warrant for one-half of a share. The offering is subject to shareholder and regulatory approval.
Crowflight has struggled recently. The company announced in the second half of last year that it would take over operations from its mining contractor. That decision was followed by the untimely passing of COO Steven Davies in October and subsequent management changes. Kevin Zhu is serving as interim CEO. Mining operations have been suspended since last fall.
The Bucko deposit contains proven and probable reserves of 3.7 million tonnes of ore that averages 1.45% Ni. The mine has a three-compartment shaft to a depth of 355 metres. The project shipped its first concentrates to Xstrata Nickel in February 2009. There is the potential to prove up resources in several nearby deposits and to expand the Bucko mill.
More information is available at www.Crowflight.com.