Deal gives Echo Bay 50.1% of Nuinsco

Shareholders of Nuinsco Resources have approved an agreement with Echo Bay Mines to proceed with the second stage of underground exploration on Nuinsco’s Cameron Lake property near Kenora in northwestern Ontario.

Echo Bay is funding the $6.75- million program through a flow- through share purchase of 2,635,000 Nuinsco shares. This will bring Echo Bay’s shareholding to 50.1% of Nuinsco’s 13,164,000 shares. Nuinsco shares closed at $2.80 on the Toronto Stock Exchange the day the deal was approved.

In phase two, the ramp will be extended to a depth of about 750 ft. Drilling will be conducted from the ramp and from exploration drifts to test the deposit in detail from the 365-ft level to a total depth of 1,600 ft. The work is expected to be complete by mid-1988.