Deak, major shareholder in Toronto-listed Wilco

One of the oldest companies on the Toronto Stock Exchange has just received a financial shot-in-the- arm that will help accelerate its pace of exploration activity and property acquisition.

Wilco Mining headed by President Douglas Hume has just completed a private placement financing with Deak International, a precious metals and foreign exchange dealer.

Deak has purchased 975,000 treasury shares of Wilco at a price of 20 cents per share or $195,000. In a separate private transaction, Deak has also purchased 753,333 shares, the entire holdings of Millard H. Luther, chairman of Wilco. Due to ill health, Mr Luther has tendered his resignation as an officer and director of Wilco.

With the completion of these transactions Deak holds more than 20% of issued capital of Wilco and is now the largest shareholder. Management of Deak has indicated it will request representation on the board of directors.

Current officers and directors of Wilco will continue to manage and direct exploration and property acquisition activities. Management of Deak has suggested its involvement with Wilco will not be that of a passive inve stor, says Mr Hume. “We’re very pleased with the Deak association,” he says.

Ever since Mr Hume took over the reins of Wilco earlier this year, he has been working to reactivate the company in the precious metals arena. Among the properties within the Wilco fold is the recently optioned Stirling property in Richmond Cty., on Cape Breton Island. Work is also planned on the company’s Dufresnoy Twp. property in the Noranda mining camp.