Bresea issues shares to ease debt problems

According to Bresea, a debt load of $100,000 will be paid off when it issues 205,000 common shares.

Negotiations for settlement of the company’s long term debt of $14,000 are under way with its bankers. “In the interim, the debt is self-eliminating through oil revenues generated from oil leases in Louisiana,” President David Walsh said.

In other news, Bresea has filed a preliminary prospectus of 57%- owned affiliate Bre-X Minerals Ltd. with the Alberta Securities Commission.

Bre-X holds a number of exploration properties including a 100% stake in 41 mineral claims (89,636 acres) located 290 miles northeast of Yellowknife, N.W.T. The claims are in the District of MacKenzie’s Back River area.

A proposed exploration program this season includes ground follow-up of the VLF-EM and magnetometer surveys flown in the latter part of 1988 and will consist of geological mapping, prospecting, geochemical and geophysical surveys.

Preliminary diamond drilling of target areas defined during the exploration program is also planned, Bresea says.

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