William Resources warms up printing press

On July 30, debenture-holders of William Resources (WIM-T) will vote on whether or not to convert their notes into 245 million shares and thus assume 70% of the company’s resulting equity.

The proposal would see each debenture converted into one unit at 29 cents each, with a unit consisting of one share and one-fiftieth of a warrant. Nearly one-third of the note-holders have said they favour the conversion, which, if approved, would see William’s total outstanding shares inflate to beyond 327 million.

This latest effort is one of several measures taken by the company over the past several months to clear itself of an overburdening debt load. Others include the sale of the BLM Service Group; ceding control of Terra Mining, which held the company’s European gold projects, in lieu of US$31 million in associated debt (the lenders have since placed the Bjorkdal mine in Sweden into receivership); and making non-recourse a US$10-million debt owed on the now-suspended Jacobina mine in Brazil by securing it against certain assets in Australia, as well as promising to pay the lenders $1 million in early 2000 and providing them an option to buy 1 million shares at 7 cents per share within the next four years.

As part of its restructuring effort, William is considering acquisitions and mergers with companies in the high-tech industry. Discussions may be facilitated once the debentures are converted, as this would essentially free the company of debt.

In 1998, William lost US$123.2 million (or C$1.66 per share) on revenue of US$74.7 million, compared with a loss of US$77.5 million (or C$1.58 per

share) on US$94 million in 1997. The dismal performance primarily reflects writedowns on those assets noted above.

Gold production fell to 137,733 from 204,164 oz. between those two periods, and, although costs were not specified, they are believed to have been

high.

At presstime, William was trading at 5 cents per share.

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