Nuinsco financing for Campbell (April 25, 2006)

A $15.5-million deal to take Campbell Resources (CCH-T, CBLRF-O) out of creditor protection has been agreed to by Nuinsco Resources (NWI-T).

Campbell, which had been in creditor protection since June 2005, will sell 100 million special warrants at 8 each in a brokered private placement through Sprott Securities, a financing that will gross $8 million. Nuinsco will take an additional 31.25 million units for $2.5 million and a rights offering of 62.5 million units to shareholders, backstopped by Nuinsco and Sprott, would provide up to $5 million more.

The units will consist of a share and a warrant for another share exercisable at 15, expiring in two years. Campbell can call in the warrants after a year if its shares stay above 30 for 20 consecutive trading days.

Nuinsco will take over management of Campbell’s Chibougamau-area projects: the Joe Mann gold mine, the Copper Rand copper project, and the Corner Bay copper project. Under the agreement, Nuinsco gets 3 million shares and a monthly fee of $25,000 and 200,000 shares, plus warrants equating to a 20% shareholding in Campbell.