Band-Ore prescribes pill to shareholders

High prices for its stock, combined with exploration success at its Thorne property west of Timmins, Ont., have prompted Band-Ore Resources (CDN) to propose a shareholder rights protection plan.

Under the proposed plan, if an individual or company acquires, or announces intentions to acquire, a minimum of 20% of the company’s outstanding common stock, the company’s shareholders would have the right to acquire common stock at half the market price.

The plan could not be used against a bid made for at least 90% of the outstanding common stock not owned by the bidder. Recent trading disclosures show that directors control well over 10% of the outstanding shares, and the plan is intended to prevent any takeover bid not approved by the board.

Noront Resources (VSE) has acquired a property on the southern boundary of Band-Ore’s Thorne claims in Bristol and Thornloe twps. for $20,000 and 100,000 shares. The vendor, a Timmins prospecting syndicate, will retain a 3% net smelter return royalty (NSR).

Noront has also acquired interests in two properties in Ogden Twp., 3 km northeast of the Band-Ore discovery.

One property has been optioned for $15,000 and 100,000 shares, with additional payments of $10,000 in each of the next two years. Noront has a 100% interest subject to a 2% NSR.

The second property was bought outright for $20,000 and 100,000 shares, with the vendor retaining a 2% NSR. Noront can buy back half of the retained interests in either property for $1 million.

International Homestead Resources (VSE) has agreed to terms under which it will take an option on a 3.2-sq.-km claim group in Denton Twp., southeast of the Thorne property. Homestead will retain 100%, subject to a 2% NSR, and pay $45,000 over two years plus 100,000 shares.