FINANCE – Zazu Metals Corp. Apr. 1 reported that directors and management of the company exercised 2.285 million options for proceeds of C$685,500. Zazu intends to use these funds to continue development of its Lik zinc-lead deposit in Northwest Alaska. As of Mar. 31, Zazu has 47.9 million shares outstanding and US$1.6 million in cash. Zazu also announced that its board of directors has approved advance notice provision to be amended to its by-laws. The purpose of the advance notice provision is to provide shareholders, directors and management of the company with a clear framework for nominating directors. Among other things, the provision fixes a deadline by which shareholders must submit nominations to the company and sets forth the minimum information that a shareholder must include in the notice to the company for the notice to be in proper written form. The advance notice provision is effective immediately and will up for ratification at the next meeting of shareholders.
GOLD/FINANCE – Freegold Ventures Ltd. Mar. 31 said it is evaluating the high-grade gold potential of its Golden Summit project. More than 20 past-producing lode mines on the Golden Summit property have produced at least 525,000 ounces of gold. These past-producers include the Fairbanks Mining District’s largest high-grade historic underground gold mines, such as the Cleary Hill Mine which produced 281,000 ounces at a grade of 44.5 grams per metric ton (1.3 ounces per ton) gold, the American Eagle which produced 60,000 oz at a grade of 44.5 g/t (1.3 oz/t) gold, the Hi Yu Mine which produced 110,000 oz at a grade of 54.8 g/t (1.6 oz/t) gold and the Newsboy Mine which produced 36,000 oz at a grade of 34 g/t (1.0 oz/t) gold. These historical mines are surrounded by more than 80 documented but largely unexplored high-grade lode gold occurrences across 10.5 miles (17 kilometers) of the Golden Summit property. More than 19,000 strike-meters of mineralized gold-quartz vein-bearing shear zones have been identified at Golden Summit. Freegold said these northwest and northeast trending zones tend to cluster into discrete vein swarms where many of the past-producing mines have been developed. These vein swarms also host the highest grade historic lode gold mines, with 11 of the highest grade mines having an average head grade of more than 44.5 g/t (1.3 oz/t) gold. With the exception of the Newsboy and Cleary Hill mines, none of the past-producing mines were exploited below 125 meters depth. Freegold said its past exploration efforts have shown that high-grade gold vein densities are higher than historic records indicate and high-grade gold mineralization occurs to depths of at least 600 meters in the three vein swarms in which the company has conducted deeper drilling. Mineralization remains open to depth in these vein swarms and the potential for deep high-grade gold resource remains untested in the other vein swarms that have been identified on the Golden Summit project. Freegold is embarking on a process to explore and build new resources on the most promising high-grade gold targets at the Golden Summit project. The company anticipates that additional bulk-tonnage gold occurrences will be identified at Golden Summit as ancillary benefits of exploration within one or more of the high-grade vein swarms on the property.
Additionally, Freegold Ventures raised C$650,284 through a non-brokered private placement of 2,827,323 units priced at C23 cents apiece. Each unit consists of one common share and one purchase warrant. Each warrant will entitle the holder to acquire an additional share for C30 cents for a period of 12 months and C35 cents per share during the ensuing 12 months. The warrants are subject to accelerated expiry provisions that are triggered if Freegold shares on the TSX Venture trade at a volume-weighted average price of C50 cents per common share for 10 consecutive trading days. A finder’s fee of 8 percent cash, or 7 percent cash plus 7 percent warrants, will be paid on a portion of the placement.
FINANCE – Bluestone Resources Inc. Mar. 28 reported it has arranged a C$100,000 non-convertible loan with John Robins, president and CEO of the company. The loan will be non-convertible, will bear an annual interest rate of 12 percent, calculated monthly, and will mature on the date that is six months from the date funds are advanced. As consideration for the loan, the Bluestone will issue 400,000 bonus shares to Robins, based on 20 percent of the face value of the loan and the minimum C5 cents per share issue price under TSX Ventures Exchange policy. The loan agreement will contain provisions related to default by Bluestone and remedies available to the lender. On Dec. 18, 2013, Bluestone announced a private placement with Robins of a C$130,000 convertible note maturing Mar. 22, 2014. Robins has agreed to extend the maturity date of the note for 30 days to allow time for the company to find a suitable financing alternative. Proceeds from the loan will be used to provide short-term working capital. Bluestone’s project portfolio includes the Shorty Creek and Richardson gold properties in Interior Alaska and the Mohave copper project in northwestern Arizona.
