Deak given right to deal Nuinsco Resources shares

Under an agreement, Deak Holdings can exercise its right to sell 7.6 million Nuinsco shares to Deak Resources at 89 cents per share at any time before April 25.

In return, Deak Resources is required to issue to Deak Holdings 4.55 million of its own shares at $1.50 each.

Deak Holdings is a wholly- owned subsidiary of New York currency trader Deak International Inc. It recently acquired a 53.8% stake in Nuinsco from Echo Bay Mines (TSE) for $6.6 million, after Echo Bay elected not to proceed with production at the Cameron Lake gold project, in northwestern Ontario.

Deak International Resources was formed after the merger of Deak Ariadne and Canadian explorers Seadrift International (ASE) and Wilco Mining (TSE). It also holds 682,200 Nuinsco shares representing a 5% interest.

Deak Holdings retains either directly or indirectly 11.5 million common shares of Nuinsco. That includes 7.6 million common shares included in the transaction, 1.29 million yet-to-be-issued common shares and 1.29 million shares subject to a warrant which expires Jan 6, 1990. Deak Holdings also retains 682,200 common shares held by Deak Resources and 590,324 voting common shares.

As a result of the transaction, Deak Holdings owns either directly or indirectly 8.2 million Deak Resources common shares.

]]>