Hawkeye Gold Corporation - $2m private placement receives VSE acceptance
Hawkeye Gold Corporation
HAW
Shares issued 5,215,314
1998-07-10 close $0.18
Wednesday Jul 15 1998
Mr. Greg Neeld reports
Hawkeye Gold has received VSE acceptance in principal for a brokered
private placement previously announced in Stockwatch June 8, 1998 for
5,000,000 units at 40 cents to raise $2,000,000. Each unit will consist
of one flow through share, one non-flow through share and two
non-transferable warrants exercisable for two years. Each warrant
entitles the holder to purchase one additional non-flow through share for
20 cents during the first year and 23 cents during the second year. As the
company's agent, Georgia Pacific Securities will receive a commission
of 10 per cent payable in cash and warrants to purchase up to 2,500,000
non-flow through shares for 20 cents during the first year and 23 cents
during the second year. The company has agreed to file a current AIF
prior to closing to reduce the applicable hold period to four months.
A portion of the proceeds will be used to carry out induced polarization
and magnetometer surveys on the TRI and REBA claims in the
Northwest Territories at an estimated cost of $75,000 and, on
successful completion and evaluation of those surveys, a $300,000
diamond drilling program. An additional $100,000 has been allocated
for the compilation of available geological information and evaluation of
airborne geophysical data and seismic data on the Front Range property
in Alberta to identify anomalies which could be indicative of lamproite
or kimberlite intrusions. That program will be followed up by a
$200,000 program consisting of local mapping and sampling of the
glacial overburden, and stream and bedrock sampling for diamond
indicator minerals and, possibly, diamonds over and adjacent to high
priority anomalies defined by the first stage compilation. The stage two
program will also include ground magnetic surveys over high priority
anomalies. A third stage, contingent on the success of the first and
second stage programs, would consist of diamond drilling to test these
anomalies which could be indicative of lamproite or kimberlite. The
estimated cost of a 1,500 metre drilling program is approximately
$450,000. No funds have been allocated to this third stage from the
proposed offering, but the company has established an exploration
reserve of $325,000 for additional work on the TRI and REBA claims
and/or the Front Range property, dependent on the results of the initial
work programs. The balance of the proceeds will be used to pay the
agent's commission, for property payments, to cover administrative
costs and overhead for the next 12 months and for general working
capital.
(c) Copyright 1998 Canjex Publishing Ltd.
canada-stockwatch.com
- - - - - - - - - - - - - - - - - -
- I like the way this company approaches its ventures, and reports them.
It also bodes well that any such financings can be accomplished in
these rough resource markets!
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- Yesterday, Kennecott (a major player) announced it is joining Montello
in the ADP (Alberta Diamond Play). This is good news for all participants,
including Hawkeye, who has some prospective land in Alberta, as referred
to above.
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Just stopping by-- see ya later!
-j
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