Consolidated Five Star Resources says it has acquired all of the outstanding shares of Chaffinch Ltd., a private corporation, for a total consideration of $10,750,000.
Five Star says included in the assets of Chaffinch are 3,725,000 shares, or approximately 18%, of Bonanza Resources, Calgary.
The funds for the acquisition were borrowed from a Canadian bank, and will be secured by a $10- million convertible debenture, convertible into common shares at 50 cents per share.
John Fleming, Five Star chairman, says it’s anticipated the bank will require guarantees in support of the loan and as a result the company anticipates issuing shares to the guarantors in accordance with Vancouver Stock Exchange policy.
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