Thursday, 11 October 2012

Tarsis Resources closes $1 mln boosted financing

Vancouver-based Tarsis Resources (CVE:TCC) says it has closed the increased financing it announced earlier this month, for total proceeds of just over $1 million. 
The offering was doubled in early October from $0.5 million, and was fully subscribed. 
The miner said several strategic investors participated in the financing, and five groups now hold just over 50 per cent of the issued shares. 
These groups, said Tarsis, include one former large shareholder that increased their position, an investor that is part of the Sprott group of companies, Almaden Minerals(TSE:AMM) (NYSE:AAU), management, and one other individual investor. 
Tarsis issued 6.87 million units at 15 cents each. Every unit is made up of one common share and one share purchase warrant, with every warrant good for an additional share at a price of 25 cents for a three year period. 
The company said the new funds will be used for prospect generation efforts in the Yukon in Canada, the Mexico and the USA, as well as for early stage exploration work to upgrade exisitng projects, and for general corporate purposes. 
Insiders took up a total of 400,000 units of the offering.
Tarsis has nine mineral properties in the Yukon, and one in Mexico. It acquires prospective exploration projects when metal prices are low or of strategic value, and vends or options out projects to partners for advancement.
Last month, Tarsis Resources unveiled final results from diamond drilling at its White River property in the southwestern Yukon, from project optionee Driven Capital Corp (CVE:DVV). 
Driven funded the 2012 exploration program as part of its deal to earn a 60 per cent interest in the project. The program represented the first ever drill campaign conducted at White River, Tarsis said. 
Moderately elevated gold values were identified in all holes, the company noted, with assays ranging from 0.42 to 2.78 grams per tonne (g/t) gold over intervals ranging from 0.76 to 1.47 metres. 
In total, 1,327 metres were drilled in seven holes during the season, with all holes targeting gold-copper-silver mineralization in portions of the HG, Cool and MB zones. 
Results for the first four holes, drilled from two pads testing a 150 metre portion of the HG Zone, were announced in mid-August, with the final three holes announced last month. 
To earn a 60 per cent interest in White River, Driven must pay $400,000 in cash to Tarsis, issue 2 million shares and spend $4.25 million in exploration on the project. 
Once earn-in obligations are settled, a joint venture will be created, with Tarsis retaining a 2 per cent net smelter royalty on any minerals produced.  

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