Thorunn Howatt
Northern News Services

Iqaluit (Aug 06/01) - Hope Bay Gold Corporation Ltd said last week it completed a best efforts private placement with Dundee Securities Corporation and Haywood Securities Inc.

Hope Bay issued 8.75 million flow-through shares at 40 cents per common share for gross proceeds of $3.5 million.

The Hope Bay gold property in Nunavut will benefit from the sale as the proceeds of the private placement will be used to incur Canadian exploration expenses.

Hope Bay is listed on the Toronto Stock Exchange (HGC) and last week traded around 33 cents per share.

The company was looking to finance phase 3 work, comprised of 5,000 metres of core drilling and other activities planned to commence the first week of August.

"This increased work program is warranted by the encouraging results received from the Madrid area," said David Phenol, Hope Bay Gold Corp.'s chief executive officer.

The majority of the phase three budget will be used at Hope Bay's Naartok deposit, a zone of gold mineralization discovered last year. Sixty-two drill holes have helped define a zone of mineralization extending 200 to 300 metres.

Miramar Mining Corporation through Miramar Hope Bay Ltd and Hope Bay Gold Corp. are involved in a joint venture controlling the 80-kilometre-long Hope Bay Archean greenstone belt.