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St. Elias Mines Withdraws Financing Of Up To $10 Mln

St. Elias Mines (CVE:SLI) says it has withdrawn the up to $10 million non-brokered private placement financing it initially announced last October.

The financing would have included the sale of a minimum of 50 million units to a maximum of 100 million units, at a price of 10 cents each.

The explorer provided no further details in its statement late yesterday.

Last month, the company announced further exploration and development plans for its Tesoro gold project in southern Peru.

"After careful review, we have adopted a two-part strategy to advance our Tesoro project over 18 to 24 months," said president and CEO, Lori McClenahan, in mid-December.

"In order to carry out the strategy we will need additional capital. We are focused on completing our financing and hope to do so during early 2013, if market conditions permit," she said at the time, referring to the financing that was withdrawn late Wednesday.

One part of the Tesoro strategy involves exploration to explore for new gold-bearing material. St. Elias said it had established "a number of attractive targets" for a 3,000 to 5,000 metre diamond drilling campaign.

The second part of the strategy involves development, focused on more than 20 waste rock dumps left behind by prior mining activity. St. Elias plans to sample and test the dumps and prepare an NI 43-101 compliant resource estimate.

The company intends to follow this up with a prefeasibility study to determine whether gold could be profitably recovered from the dumps, providing cash to support additional exploration.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.