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Twin Mining Corp. has completed a road show designed to help it raise between $5-million and $15-million after expenses to explore for diamonds in northern Quebec. Hermann Derbuch, chairman and president of Toronto-based Twin, wound up the road show yesterday in Calgary. He had visited Vancouver and Saskatoon on the Canadian swing after returning from Geneva, Zurich, Paris and Brussels. With gold exploration largely in the doldrums, diamonds and platinum and palladium projects are about the only hot spots for mining companies trying to raise money for grass roots, or early-stage, exploration. The company was formerly known as Twin Gold Corp. The financing on a best-efforts basis is being handled by Dundee Securities Corp. and National Bank Financial Inc. Mr. Derbuch hopes the deal can be closed next week. Twin is planning to sell the common shares, which are eligible for the flow-through share tax deduction, at 85 cents each. The company had raised $2.2-million last December of which $1.5-million remains. Twin is listed on the Toronto Stock Exchange and it had 49.4 million shares outstanding at March 31, and 6.2 million special warrants. The prospectus describes the sampling of the kimberlite dikes so far as "of a reconnaissance nature." While only a small number of diamonds have been found, a "very high percentage" are high-quality white and transparent stones, a technical report states. Kimberlite is a rock associated with the presence of diamonds. The company has taken five samples of 10 tonnes each from its Torngat diamond property on the east side of Ungava Bay in northern Quebec. The exploration permits cover 444 square kilometres. The town of Kuujjuaq (formerly Fort Chimo) is 250 kilometres southwest of the property. The money is being raised in order to take 3,000 to 5,000 tonne bulk samples to Saskatoon for processing. The estimated cost of the second-phase bulk sampling and drilling program ranges from $5.3-million to $15.2-million with the size depending on the amount raised. The dikes were discovered by staff and students of the University of Quebec in the early 1990's. | ||||||||||||||
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