There seems to be no shortage of money for Canadas mine development sector. News of nearly a half billion dollars in development money has found its way into my inbox in the last few days.
GAMMON LAKE RESOURCES of Halifax raised Cdn$200 million through a public offering. The money will be used to advance exploration at the Ocampo and El Cubo gold-silver properties in Mexico. The Ocampo mine reached commercial production (400,000 oz AuEq/year) in January 2007. (www.GammonLake.com)
Vancouvers NOVAGOLD RESOURCES closed its successful public offering that raised Cdn$229 million. Net proceeds are earmarked for exploration and the beginning of construction at the Galore Creek copper-gold project in British Columbia. Capital costs of development from 2007 to 2010 are estimated at US$1.74 billion. (www.NovaGold.net)
METANOR RESOURCES of Val dOr, Que., plans to raise Cdn$20 million through a private offering. The companys plans may be on a smaller scale than those of Gammon Lake and NovaGold, but they are just as important. Metanor will spend the proceeds of the offering on bringing the Barry gold deposit into production as an open pit. It lies 15 km southeast of the former Bachelor Lake mine where the company will expand the mill to 750 t/d from 500 t/d. Underground exploration is also planned for Bachelor Lake. (www.Metanor.ca)