For the second time in just over a year, a group of Toronto investors has promised to reactivate Black Hawk Mining and inject some new capital into the Toronto-listed shell company.
Dynamic Capital Corp. Equities, which gained a 34% controlling interest in October from Platinova Resources, has announced a private placement to raise $1,120,000 as a first step in a revival plan.
Dynamic vice-president Gordon Bub, says the company is also looking at a number of possible base metal plays with a view to participation. A new president will be named soon, he says. Under the terms of the placement, Davidson Partners of Toronto will buy two million common shares, and 600,000 share purchase warrants each entitling the purchaser to buy one common share at 70 cents for three years.
Davidson President Rocco Marcello holds 17% of dcc’s 1.45 million shares. He was named to the Black Hawk board with Hayes Resources Chairman Stephen Dattels, dcc President Robert Buchan and Bub.
To erase a $5.1-million debt load, Black Hawk will also issue 1.66 million common shares to a number of debenture holders
A former member of the Denison Mines group, Black Hawk held a 40% interest in the Blue Hill, Maine, zinc mine where operations shut down in 1977. Through Platinova, it also held 51% of a wollastonite property in Marmora Twp., Ont.
In December, 1986, a group of four Toronto investors bought Denison’s 42% interest. After promising to increase the company’s capitalization to 24.5 million shares, the investors dealt Black Hawk to rare earth specialist Platinova Resources last June.
“Right now we are looking at base metal opportunities but it would be foolish to restrict ourselves to any one area,” said Bub.
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