Millstream to begin Potter mine exploration; working capital
Thursday May 13 1999
Mr. Ernest Harrison reports
The company and Hunter Dickinson Group Inc. have struck the budget for the first phase of the $19-million exploration program at the Potter property (Stockwatch, April 16, 1999). The $4-million phase I program will consist primarily of diamond drilling in the Potter Cu-Zn deposit area. In addition, other areas of high probability will be confirmed with geophysical surveys and targeted for drill testing during this phase. Three drill rigs are presently being mobilized. Work on the property is to start the week of May 17, 1999.
In the company's news release in Stockwatch, March 26, 1999, statements by consultants, Dr. Gibson and David Gamble, support Yorkton Securities' previous report (May 5, 1998) that "the deep drilling program at Millstream's Potter mine represents one of the most promising current base-metal exploration projects in Canada. The drill intercepts beneath the former mine workings have been exceptionally high grade".
At the recent annual shareholder and special meeting (May 4, 1999) the minority shareholders ratified the 100 per cent purchase of the Potter mine property, with the insiders and control block abstaining from voting.
Mr. Harrison also reports
The company has closed the working capital financing, in which Hunter Dickenson Inc. participated in a private placement of 1.1 million units of Millstream purchased at 50 cents per unit. Each unit consists of one common voting share and one share purchase warrant exercisable for two years at 50 cents per share. All participants were at arm's length to the company.
Additionally, flow-through warrants were exercised for 15,000 common voting shares at a price of 45 cents per share.
The total total proceeds raised from the above is $556,750 from the total issuance of 1.115 million common voting shares.
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