Lamont,
I am hearing the reason the stock is being hit, is because the private placement that was done a couple of months ago (see below) was delivered on Friday of last week. The selling mainly came from Nesbitt who I hear was an investor from London who is unloading the stock and keeping the warrant.
I own the stock at lower and higher levels and believe it is a buy at these levels.
The drilling is being done by Inco and if they get anything close to the grab samples this could be a huge find. This was Inco's # 1 exploratory project before they stopped all projects during the Voisey Bay lawsuits.
They should have the first results of drilling in 2-3 weeks.
Here is the announcement of the warrant:
Released on February 12, 1997
Special Warrant Closing
Fort Knox Gold Resources Inc. wishes to report that it has completed an offering of 2,200,000 special
warrants for gross proceeds of $4,665,460. A commission of 6 percent was paid to registered dealers in
connection with the financing.
Each special warrant is convertible, for no additional consideration, into one common share and one-half
of one share purchase warrant. Each whole share purchase warrant will entitle the holder to acquire one
additional common share at an exercise price of $2.50 for a period of one year from closing.
Proceeds from the financing will be used to conduct exploration of the Klu property, comprised of 526
contiguous mineral claims covering approximately 11,000 hectares in the Yukon Territories and the
Nikolai claims comprised of 940 claims in three contiguous groups covering approximately 14,000
hectares in Alaska. Fort Knox has entered into an agreement with Inco Limited to earn a 45 percent
interest in the Klu property and Nikolai claims by issuing an aggregate of 500,000 common shares to
Inco and making expenditures of U.S. $6,000,000 on the properties over a four year period. Shareholder
approval of the property transaction will be sought at a meeting scheduled for March 6, 1997. Inco
currently owns approximately 28.5 percent of the issued and outstanding common shares of Fort Knox.
Murray |
