A private company incorporated in the British Virgin Islands, Barnwell Investments Ltd., has an agreement with Northgate Exploration (TSE) to acquire more than 5.6 million shares of MSV Resources (ME), including 177,559 shares of MSV in escrow, at 24.9 cents per share.
The $1.4 million deal will give Barnwell a 32.8% interest in MSV, which has plans to develop the Eastmain gold project in northern Quebec and whose largest investment is an ownership stake in Nova-Cogesco Resources. Meanwhile, Northgate has offered to purchase any or all of its outstanding 7% convertible subordinated debentures at a price of $60 per $100 face value. Tendering debenture-holders will receive warrants to purchase common shares of Northgate at $11 per share.
As well, Northgate says it has acquired almost 1.5 million shares of Geddes Resources (TSE) at 55 cents per share pursuant to a Geddes rights offering. The purchase maintains Northgate’s 39.3% interest in Geddes. By exercising warrants, Northgate would increase its ownership in Geddes to 40.8% on a fully diluted basis. Geddes says its rights offering raised more than $2 million.
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