The amalgamation of Faraday Resources and Marcon Canadian Holdings Inc., a private company, was approved by Faraday shareholders at a meeting held Aug. 21 with the amalgamated company continuing under the name of Faraday Resources.
Previously announced, (N.M., June 9/86) this amalgamation represents a major step for Faraday by significantly increasing its equity and voting interests in Conwest Exploration says President J.C. Lamacraft..
Faraday had held 6.7% of the equity, on a fully diluted basis, of Conwest, a natural resource company active in the oil, gas and mining business. After the amalgamation Faraday owns 19% of the equity and 49% of the voting rights of Conwest, on a fully diluted basis, giving it effective control of Conwest.
The amalagamation also means a significant expansion of Faraday’s equity basis, almost doubling the outstanding share capital. Faraday now has 6,677,703 common shares outstanding, no debt and a working capital of $3.5 million.
At current prices, the value of Faraday’s assets are more than $33 million. “The strength of this financial position further expands Faraday’s capacity to undertake additional investments,” says the president.
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