$6 million for the Hewfran drilling program is a lot of money and if you consider the fact that grades there are increasing with depth we might be in for a pleasant surprise

Another explanation for PP is that Metanor wants to quickly rush to 1200 tpd

"we want to bring the capacity up to 1200TPD, that’s in the plans. In light of where gold prices are and what we hear in the market place I think we would like to move on that in the very near future.”

Another reason is they want to mine higher grades:

"if we go down we get better grade obviously, there is better grade down the shaft, and if we did a mix of say 700 tons of Bachelor ore and 500 tons of Barry ore we would probably get an average of close to 7 grams, the idea is to manage your grade, manage your cash flow, extend mine life, and keep exploring. So we feel could get the mill up to 1200 TPD probably within 6 months and we feel we could get the shaft somewhere by 8 to 10 months time frame."

The net proceeds from the offering will be used for further exploration and development of Metanor's Bachelor, Hewfran and Nelligan gold projectsas follows:

$6-million for the Hewfran underground and surface drilling program;

$3-million for the underground development at Bachelor Lakemine;

$1-million for exploration on the Nelligan property.