Restructuring fills Minorca’s coffers

A stock restructuring program has given Minorca Resources (mar-t) an influx of $67 million for potential project development.

Eleven million special warrants were issued on March 13, and holders of 10.9 million accepted the restructuring proposal, converting them into Series 2 special warrants.

Immediately after the conversion, the Series 2 special warrants were exercised, with holders receiving — after the consolidation of the company’s outstanding shares on a one-for-two basis — one share, one-quarter of one Series 2 share purchase warrant and $1 cash for each Series 2 special warrant.

Each Series 2 share purchase warrant entitles the holder to buy one share for $3 before March 13, 1999. On a pre-consolidation basis, this is equivalent to two shares, one-half of one Series 2 share purchase warrant (at an exercise price of $1.50) and $1 in cash for each Series 2 special warrant exercised.

The remaining 57,000 special warrants were also exercised, with holders receiving, after the consolidation, 0.55 share and one-quarter of one Series 1 share purchase warrant. Each whole Series 1 share purchase warrant entitles the holder to buy one share at $14.30 before March 13, 1998. On a pre-consolidation basis, this is equivalent to 1.1 shares and one-half of one Series 1 share purchase warrant (at an exercise price of $7.15) for each original special warrant exercised.

Minorca President Roland Horst described warrant holder participation in the restructuring as “overwhelming.”

Among Minorca’s major interests are gold properties in Quebec, Nevada, Mexico and Indonesia.