Toronto-based Armistice Resources (ME) and its principal creditor have announced a settlement to their legal differences.
Dynatec Mining, which was owed more than $2.1 million, will receive $450,000, 7.5 million shares and the payment of $1 per ton of ore removed from the Armistice gold project in northeastern Ontario and subsequently treated (to a maximum of $500,000).
Also, Armistice says it reached a settlement of a $50,000 demand debt, that sum being the aggregate of advances made by Aurelian Developers (CDN) during the past two years, by the issue of a unit consisting of 500,000 shares and a warrant to purchase a further 500,000 shares at 15 cents per share by July 1, 1995.
Armistice has an option on a property at Virginiatown (adjacent to the old Kerr Addison mine) which it was actively exploring a few years ago. A new program is being drawn up and the company has placed Guy Hinse in charge of exploration and development.
The company is planning a rights offering in Quebec, through First Marathon Securities, whereby a holder of four shares may purchase one new share for 15 cents. The offering may include a warrant to purchase additional shares. The transactions will increase Armistice’s capital to almost 43.6 million shares, with Dynatec owning about 17%.
Armistice owes royalties of about $160,000; the company has been negotiating with the royalty-holders to postpone a large part of this indebtedness. The above transactions are subject to shareholder and
regulatory approval. A shareholders’ meeting is scheduled for March 14.
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