Crosshair Exploration & Mining has commenced drilling on its Wings Point-Titan project. The 10-hole phase 1 drilling program will test previously released trench results, including 15.25 grams per tonne gold over 3.00 metres and 9.41 grams per tonne gold over 4.25 metres. Eight holes will test exposed high-grade gold mineralization exposed to vertical depths of 25 and 50 metres directly beneath the trenches, with step-outs of up to 50 metres along strike. Due to the presence of coarse gold at Wings Point-Titan, HQ core will be drilled and all assays will be carried out using a metallic screen separation and fire assay technique to ensure that coarse gold will report to the final results. The drill program is expected to last about two weeks.
The company has completed a first closing for a brokered private placement of 3.34 million flow-through common shares at a price of 25 cents per share for total gross proceeds of $835,000. Pursuant to an agency agreement dated May 18, 2004, Dundee Securities Corporation acted as the agent on a best-efforts basis. Dundee received a cash commission of 8 per cent of the total gross proceeds of the private placement equal to $66,800. In addition, the company issued to Dundee compensation warrants exercisable for 267,200 non-flow-through shares of the company. The compensation warrants will be exercisable at a price of 25 cents per common share for a period of 12 months after the closing date.
All securities issued under the private placement will be subject to a four-month hold period from the closing date ending Sept. 19, 2004. A second closing for additional proceeds is expected to take place within the next 10 days. Proceeds from the financing have been allocated to the company's Newfoundland exploration properties. The company has a full $900,000 exploration program planned for 2004 and early 2005, with approximately $500,000 earmarked for drilling on the Wings Point-Titan, Golden Promise and Glenwood Break properties.