Nuinsco to acquire property

Exploration is set to resume on 35,000 acres of patented and unpatented claims south of Kenora, Ont., following an agreement-in-principle among Nuinsco Resources (TSE), Deak International Resources Holdings and Dynatec Mining.

Deak is Nuinsco’s major shareholder while Dynatec is the junior’s major creditor.

Under the agreement, Nuinsco will pay Dynatec $250,000 and sell $200,000 worth of idle equipment and unused supplies from its Cameron Lake gold property to Dynatec.

Nuinsco’s $2 million debt to Deak will be converted into a non-interest bearing $1.4-million debenture convertible to about three million shares at 47 cents per share.

Once the debt restructuring is complete, Nuinsco will acquire the Rainy River gold properties, which consist of 800 unpatented claim units and several patented properties centred around a recent gold discovery made by Western Troy Capital Resources (ASE) in Menary Twp., Ont.