Financing News - $500,000 PP at $1.00
REDHAWK ANNOUNCES INITIAL FUNDING FOR REMAC ZINC PROJECT
Redhawk is pleased to announce the first funding for its 100% owned Remac Zinc Project surface diamond drilling program. The project is located 20 miles south-east of Cominco's zinc-lead smelter Complex at Trail, British Columbia, and adjoins the old Reeves MacDonald Mine which operated for 26 years from 1949-1975.
The $500,000 private placement financing is composed of 400,000 flow-thru shares and 100,000 non flow-thru shares at $1.00 per share. Each share carries a warrant; two warrants entitle the purchaser the option to purchase a further share at $1.20 for the first 12 months and $1.40 per share for months 12 to 18. The shares are subject to a one-year hold. The financing is subject to Regulatory Approval.
The drill program, recommended by the Company's Geological Consultant, Mr. Ralph Westervelt, M.Sc., P.Eng., is scheduled to begin as soon as drill contracts are negotiated and signed.
In his report, Mr. Westervelt states "The present review clearly indicates a major potential for developing significant new sulphide reserves on Redhawk's property. Drilling in 1986-88 essentially confirmed the faulted continuity of three of the ore zones (Annex, Annex West and Redbird) immediately west of the old Reeves MacDonald Mine with a potential reserve of some 5 million tons averaging about 8% Zn, 3% Pb, 0.05% Cd and 2 opt Ag....Further sulphide target areas have been defined with a reserve potential estimated at another 9 million tons."
The initial drill program is designed to develop ore down plunge from hole 87-1 drilled in early 1987. Hole 87-1 intersected 54 feet of the Annex Zone running 8% Zn, 0.88% Pb, 1.6 opt Ag and 1.8 pounds of cadmium per ton (including 26 feet of 10% Zn, 1.64% Pb, 2.2 opt Ag and 2.4 pounds of cadmium per ton.) |
