Deak International private placement (July 29, 1991)

Toronto-based Deak Inter-national Resources Holdings has entered into a private placement agreement to ac-quire 7.6 million shares of af-filiate Deak Resources (TSE) for 25 cents per share.

Subject to regulatory ap-proval, the transaction will increase Deak International’s stake in Deak Resources to 12.1 million common shares, representing 31.4% of the common shares outstanding.

In addition, Deak International holds warrants to acquire a further 1.1 million common shares exercisable at 25 cents each by June 21, 1993. Proceeds of $1.9 million from the private placement will be used to repay secured debts owed by Deak Resources to Deak International which come due July 7, 1992. As a result, the amount owed by Deak Resources to Deak International will decline to $1.56 million.