A Nova Scotia mineral exploration company wants to raise $3.2 million for more zinc exploration in Cape Breton.
Despite the tight credit crunch, Merrex Gold announced in its latest financial report that it will go out to the capital markets to raise money for its exploration plans in 2009.
"We’re in a better position than others with a good partner and the Mali (gold) project," company spokesman Jamie MacNeil said Wednesday.
Merrex recently partnered with Toronto’s Iamgold, one of the world’s top gold producers, which invested $12 million in further exploration at Merrex’s gold discovery in Mali, West Africa, he said.
The junior exploration company announced last October it plans to spin off its Cape Breton zinc project at Little Narrows known as the Jubilee project into its own company, but that hasn’t happened yet, Mr. MacNeil said.
Company president Greg Isenor, who has been developing the deposit of lead and zinc for the past 30 years, has previously said that if the Jubilee project formed its own company, the resource could expand and eventually go into production.
Merrex spent almost $5 million in exploration until the end of November on the Jubilee project, in Inverness and Victoria counties, the company reported in its quarterly statements with securities regulators Wednesday.
The company also reported a loss of $345,062 for the three months ended Nov. 30, 2008, compared with a net loss of $515,085 for the same period in 2007. The decrease in the loss was attributed to a drop of $256,803 in administrative costs.
Besides the zinc project in Cape Breton, Merrex also explores for gold in West Africa and Turkey and in Red Lake, Ont.
Source: Chronicle Herald, Nova Scotia, Canada
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