Northgate selling shares in MSV

An approximate 33% ownership interest in MSV Resources (ME) is being sold by Northgate Exploration (TSE) in a deal which subsequently involves directly and indirectly several junior companies.

Nova-Cogesco Resources (TSE) says it intends to acquire a 16.5% interest (three million shares) in MSV from Northgate for $800,000. And, Societe de developpement de la Baie James says it intends to acquire an approximate 16% interest (2.98 million shares) in MSV from Northgate for $800,000. Both deals are subject to various approvals. (Societe de developpement de la Baie James is a Quebec government agency involved in the economic development of the province’s north.)

In a separate transaction, Hughes Lang (VSE), a Vancouver-based junior, intends to acquire from MSV a 13.6% interest (2.1 million shares) in Nova-Cogesco for $651,000. And, Orofino Resources (TSE), 53% owned by Hughes Lang, intends to purchase a 16.2% interest (2.5 million shares) in Nova-Cogesco from Le Fonds de Solidarite des Travailleurs du Quebec for $775,000. (Le Fonds is a venture capital organization created by the Quebec Federation of Labor in 1984.) The deals, both subject to regulatory approval, will result in Hughes Lang owning 13.6%, and Orofino 35%, of Nova-Cogesco. MSV retains an option to sell a further 6.3% interest (969,518 shares) of Nova-Cogesco to Hughes Lang between Sept. 30 and Oct. 7, 1992. Following the above transactions, Isimenuu Investments Inc., a private company controlled by Mario Caron and Pierre Bourdreault, will purchase, from Nova-Cogesco, the MSV shares acquired by Nova-Cogesco.

MSV’s major property asset is the Eastmain gold project near James Bay in northern Quebec.

Nova-Cogesco also intends to purchase, from Societe de developpement de la Baie James, 1.4 million shares of Campbell Resources (TSE), a Northgate subsidiary, for $800,000.