Rio Algom increases stake in St. Philips with options

Pursuant to an agreement signed in early 1991, Rio Algom (TSE) recently purchased an additional 296,942 shares of St. Philips Resources (VSE).

The purchase, comprised of 259,286 deferred options exercised at a price of $2 per share and 37,656 advanced options exercised at $3 per share, netted St. Philips $631,540 which will be used to fund continuing work programs on the South Kemess project in north-central British Columbia.

El Condor Resources (VSE), the company’s 60% partner and operator on the property, plans to proceed with development of the South Kemess copper-gold project and has filed initial permitting documents with regulatory authorities.

Rio Algom now owns about 2.44 million shares of St. Philips, or 30% of the company’s issued capital.

Rio currently holds a 9.9% equity interest in El Condor and also holds additional options on St. Philips which, if exercised, would increase its position to more than 50%.