Scorpionannouncement/MacMillan
Reuters Story - March 06, 1998 11:37
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(Full text of press release from Canadian Corporate News)
MARCH 6, 1998
Scorpion Minerals Inc. Acquires Interest in Macmillan Gold Corp.
TORONTO, ONTARIO--Scorpion Minerals Inc. ("Scorpion") is pleased to report
that it has acquired 4,000,000 units of MacMillan Gold Corp. ("MacMillan")
(TSE - MMG) at a price of $0.40 per unit for a total investment in MacMillan
of $1.6 million. Each unit is comprised of one common share of MacMillan and
one-half common share purchase warrant. Each full purchase warrant is
exercisable for a period of two years and allows Scorpion to acquire one
common share of MacMillan at an exercise price of $0.80 for the first year,
$1.20 for the next six months and $1.60 for the final six months. Following
closing, Michael Farrugia, Chairman of Scorpion, will hold one of MacMillan's
five board seats. Following this private placement, MacMillan has 17.9
million shares outstanding.
Said Michael Farrugia, "Our investment in MacMillan is beneficial to
Scorpion in a number of ways. Firstly, it provides property diversification.
MacMillan has a portfolio of three very promising gold and porphyry
copper-gold properties in Peru. More importantly, MacMillan has entered into
joint venture agreements on these properties with partners that are well
respected in the mining industry - including Rio Tinto Mining and Exploration
Limited and a subsidiary of Cambior Inc. These joint ventures reduce
MacMillan's cash requirements and, we believe, increase the likelihood of
success. Lastly, MacMillan provides Scorpion with geographic diversification.
With this investment in MacMillan, Scorpion now has interests in two of the
most promising geological settings, Indonesia and Peru - each of which host
some of the largest mineral deposits in the world".
Scorpion's Indonesian Operations
Scorpion's exploration of the Sampanahan property is ongoing. Following
the release of very promising results from the initial Dewi drilling program,
Scorpion has commenced a follow-up program at the Dewi prospect which will
include additional drilling in the areas around holes 8 and 9 as well as an
auger program on 50 m centres to investigate the area between holes 8 and 9.
As previously reported, holes 8 and 9 yielded results as high as 8 m at 3.48
g/t Au for hole 8 and 18 m at 1.93 g/t Au, 0.24 percent Cu for hole 9.
Drilling was completed during the month of February on the Hapungu vein system
prospect, located in the Regional Hapungu Stream Sediment Anomaly
approximately 65 km NNE of the Miing prospect. In total, Scorpion drilled 4
holes aggregating 501.8 m. The four holes failed to intersect any high grade
silicified material but did intersect minor 1 to 2 m wide clay, carbonate,
sulphide breccia zones. Significant assay results included 4 m (colluvium) at
7.49 g/t Au and 2 m (colluvium) at 1.22 g/t Au.
FOR FURTHER INFORMATION PLEASE CONTACT:
Scorpion Minerals Inc.
Lynn Grogan
Chief Financial Officer
(416) 777-6761
(416) 777-6764 (FAX) |
