Junior Starratt Nickel Mines (CDN) plans to buy the outstanding shares (together with certain royalty rights) of a private company which owns the Palmerston tremolite property in eastern Ontario.
The purchase price is $1 million cash plus Starratt shares, the number of which will be determined once Starratt completes a corporate restructuring. Under the reorganization, the company plans to consolidate its outstanding shares and increase its authorized capital.
The property has been in production on a small scale since 1979. Tremolite is used as a replacement for asbestos in asphalt and brake linings and has potential applications in ceramics, sealants and cement additives. The owner of the property is negotiating a research, development and marketing joint venture with a European industrial group in order to expand the market for tremolite and increase production.
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