A letter of intent to acquire up to 100% of the outstanding shares of Antioch Resources of Spokane, Wash., has been signed by Nevada Goldfields (TSE). Terms of the share-exchange agreement and share-exchange ratios have not been negotiated. The offer is subject to regulatory approval in both Canada and the U.S.
Two of the principals of Antioch are Robert Allen and Richard Atkinson, who would become members of Nevada Goldfields’ board of directors. Allen and Atkinson co-founded Getty Resources which was sold in 1988, took part in a merger with another company and is now known as Total Energold.
Antioch has an option to purchase the Logan gold mine property in Nova Scotia.
Nevada Goldfields has two gold- mining operations in the state of Nevada. The company recently reported that holders of its 10% convertible subordinated debentures have approved a 2-year interest moratorium on the debentures for the period Dec. 16, 1989-Dec. 15, 1991.
In consideration of the forgiveness of about US$1.8 million in interest rates during the moratorium, the company will reduce the debenture conversion price from $2.65 to $1.65. The company will allow debenture holders to convert at $1.40 by Aug. 31.
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