Planned transfer of interests fails

A proposed transfer of the Magino and Magnicon mining properties to a newly formed joint exploration company will not proceed.

The proposed transaction involved Flanagan McAdam Resources (TSE), McNellen Resources (TSE) and Muscocho Resources (TSE) which were to have transferred their interests in the properties to a new company. In addition, Maligne Resources would have provided $7.2 million to the new company, together with an additional potential production financing of up to $4 million. Crestar Energy, parent company of Maligne, said Maligne withdrew from the deal because insufficient time was available to complete the documentation to the satisfaction of Maligne before the 1993 fiscal year-end. Flanagan, Muscocho and McNellen are understandably disappointed, having recently obtained shareholder approval for the transaction at meetings held earlier this month. The companies regard this as a delay in making financial arrangements necessary to allow work to resume on the properties. Discussions are continuing with Crestar-Maligne and other interested investors.