News: Financing and new drill proposal
Northern Crown Mines Ltd NCW
Shares issued 23,513,141 Jul 2 close $0.06
Fri 2 Jul 99 Company Review
An anonymous director reviews the company
Exploration development
During the first quarter a work plan and budget was developed for a
proposed 1999 drilling program at the Guadalupe Project in Mexico. The
proposed program, which will be subject to completion of financing later in
the year, contemplates diamond drill testing of higher grade gold and
silver mineralization intersected during the course of wide-spaced drilling
within the San Miguel and Guadalupe zones. The proposed drilling will
further define gold mineralization grading in excess of eight grams per
tonne and silver in excess of 150 grams per tonne. Earlier drilling
indicated potential for development of gold and silver mineralization that
could be economically mined from underground at a gold price of $270 per
ounce. The 1999 work plan calls for a budget of approximately $1.0-million
(Canadian).
Corporate and administrative activity
Administrative expenditures, excluding corporate development costs, for the
quarter were $58,064.
On March 18, 1999, the company announced that it had agreed, subject to
regulatory approval (subsequently obtained on April 21, 1999), to carry out
a 4,500,000 unit private placement at a price of six cents per unit, each
unit consisting of one share of the and one-half share purchase warrant.
Each whole share purchase warrant entitles the holder to purchase one
additional share of the company at 10 cents per share for one year. In
addition, the company agreed to carry out a 750,000 unit private placement
at a price of seven cents per unit with a non-arm's length party. The seven
cents units have the same terms as the units described above.
The company will use the proceeds of the private placements for general
working capital purposes and satisfaction of property acquisition costs on
the Guadalupe project in Mexico.
Subsequent to the end of the first quarter and subject to obtaining
shareholder approval at the company's annual general meeting to be held on
May 28, 1999, the Toronto Stock Exchange granted conditional approval of
the company's proposed entry into a convertible promissory note with John
S. Brock Limited evidencing $360,000 of the company's total indebtedness to
John S. Brock Limited. The note will be convertible at a price of no less
that seven cents (Canadian) and the eight-per-cent interest on the note may
be payable in common shares of the company. John S. Brock does not act at
arm's length to the company.
Corporate development activity
Other than normal course response to shareholder and broker inquiries,
there was no program of investor relations activity carried out during the
quarter.
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Testing new SI Beta version, particularly the copy & paste.
Unfortunately it doesn't look like it has improved but will have to see the final published result. |
