Proposed $3m (U.S.) financing; high grade discovery hole in Argentina
Abacus Minerals Corporation AMCShares issued 215904051998-04-28 close
$0.45Wednesday Apr 29 1998Mr. Steve Todoruk reports First American
Financial Group of New York has agreed to use its best efforts to raise
$3.0-million (U.S.) by way of a convertible debenture financing. The
proposed minimum terms of the financing are as follows:
Type of financing: Convertible debenture
Amount: $3.0-million (U.S.)
Interest: 9.0 per cent yearly
Payments: In arrears, either
quarterly or at the
end of the term of
the debenture, at
Abacus' option as
provided herein.
Term: Three years from the
date of closing.
Conversion: No conversion or
retraction for the
first year of the term.
During the second year,
holder can apply to
convert principal to
common stock at 50 cents
(Canadian) per share.
During the third year,
holder can apply to
convert the principal
to common stock at
60 cents (Canadian)
per share.
Upon receipt of notice of intent to convert, Abacus has 30 days to elect
to: 1.Issue the appropriate common stock and pay interest arrears; or 2.
Retract the debenture by: immediately granting the debenture holder 2.0
million, two year warrants exercisable into 2.0 million common shares at
50 cents (Canadian) during the first year or 5.75 cents (Canadian)
during the second year, and paying in full all outstanding capital and
arrears owing on the debenture within 120 days. After the first
anniversary date, Abacus shall have the right to retract the debenture
at any time under the same terms and conditions as 2. above providing
that Abacus' shares are trading at a minimum of 50 cents (Canadian).
Fees are $5,000 (U.S.) due on issue of commitment. One per cent of loan
due at closing. The financing is subject to regulatory acceptance and
the conversion price and the warrant exercise price will be based upon
the trading price of the company's shares at the time a financing
commitment is made, in accordance with the policies of the VSE. Mr.
Todoruk also reports Abacus Minerals has received results from the first
two diamond drill holes from its recently completed phase I drill
program on the La Manchuria property in Santa Cruz Province, Argentina.
Drill holes LM98-1 and LM98-2, drilled 75 metres apart, tested trench
results previously reported by Barrick Gold and Abacus Minerals.
Significant results from LM98-1 and LM98-2 are tabulated below:
From To Width Au Ag
(m) (m) (m) (g/t) (g/t)
Drill hole LM98-1
106.2 117.7 11.5 1.22 136.6
Drill hole LM98-2
45.05 103.07 58.05 6.53 22.3
Both drill holes encountered highly anomalous values throughout their
length. Among the values not reported above, LM98-1 intersected 1.5
metres of 2.08 g/t gold and 4.8 g/t silver between 15.2 metres and 16.7
metres, and 1.5 metres of 1.54 g/t gold and 20.9 g/t silver between 30.7
and 32.2 metres. Hole LM98-2 reported a 1.5 metre intersection of 1.25
g/t gold and 158 g/t silver between 10.52 metres and 12.02. The weighted
average grade of LM98-2 from 1.5 metres to a depth of 103.7 metres is
3.81 g/t gold and 17.9 g/t silver. Both LM98-1 and LM98-2 terminated in
the favourable felsic volcanic host unit with quartz stockwork veining
still present. Assaying is being carried out by Acme Analytical Labs in
Santiago Chile. Check assays are being carried out by Chemex Labs in
Vancouver, Canada. Assays reported are uncut. Abacus is earning a 100
per cent interest in La Manchuria and five other projects in Santa Cruz
from Barrick Gold. The company has completed its first year work
commitment of $500,000 (U.S.). Phase II drilling at La Manchuria will
resume in approximately 10 days. Assay results from the remaining five
drill holes will be released in a timely fashion. (c) Copyright 1998
Canjex Publishing Ltd. canada-stockwatch.com
old url (better for printing) |
