Murray Pezim back in Corona fold

West-coast entrepreneur Murray Pezim and Galveston Resources have called off their legal action against International Corona Resources, Royex Gold Mining and related companies. At the same time, Mr Pezim has settled his differences with Royex chairman Ned Goodman and Peter Steen, president of both Royex and Corona.

Meanwhile, Royex has increased its interest in Corona from 38% to 50% following the tendering of 3.25 million common shares of Corona and 300,000 1987 warrants to purchase common shares of Corona. Royex had offered to buy 4 million shares at $50 each and 750,000 warrants at $40 each.

Royex has also entered into a voting trust agreement with Mr Pezim and Galveston whereby Royex has been granted voting rights over Corona shares owned by Mr Pezim and companies associated with him, including Galveston.

Royex will also have a first right of refusal to purchase all Corona shares or securities convertible or exchangable for Corona shares owned by Mr Pezim or such companies. The voting trust agreements provide for continued Galveston representation on the Corona board.

The voting trust agreements and a similar agreement with Teck Corp. give Royex voting control over more than 50% of Corona currently and approximately 50% of the Corona shares that would be outstanding on a fully diluted basis.

Mr Goodman, in a prepared statement, said he is “personally delighted to be clearing up past differences with Mr Pezim so that Mr Pezim could achieve the proper honor and dignity in accord with his position as founder and initial promoter of Corona.”

Mr Pezim stressed the need for teamwork, saying he has “come to realize that the interests of all shareholders would be maximized by everyone pulling together rather than continuing the internal squabbles of the last few months.”

Lawrence Page, a Vancouver lawyer and business associate of Mr Pezim, will rejoin the Corona board of directors and become a member of Corona’s executive committee. Mr Pezim remains a Corona director. Former Corona board member Arthur Clemiss will serve as a director of a Corona affiliate.

Mr Pezim and Galveston, which he controls, turned to the courts in part to contest membership of the Corona board. The court petition also sought to reverse Corona’s acquisition of a control block of shares in Lacana Mining, and to prohibit management from voting Corona shares held by subsidiaries.

A few years ago, the names Pezim and Corona were almost synonymous. Using Corona as a financing vehicle, Mr Pezim raised funds for a gold mine on the northern shore of Lake Superior which was the start of the current Hemlo gold camp. Financial troubles in other ventures led to his selling off control in the company.