Nuinsco completes financing deal

Under a new agreement, Nuinsco Resources (TSE) will reduce its working capital deficiency to $840,000 from $3.5 million.

The company will sell 2.4 million treasury shares to Winoro, an investment company, for $600,000.

Also, Winoro has made a “firm commitment” to contribute another $500,000 by guaranteeing a stand-by agreement for a rights offering to Nuinsco shareholders. The rights offering will be made within 120 days of the completion of the private placement.

Winoro can buy all or any part of the remaining unsubscribed shares of the rights offering and nominate two persons to Nuinsco’s 6-member board of directors.

Brawley Cathers Ltd. acted as Nuinsco’s agent for the private placement and will act as Nuinsco’s agent and soliciting dealer in the proposed rights offering. For this, Brawley will be granted the option to buy 500,000 Nuinsco treasury shares at 50 cents each for 18 months.

Nuinsco will receive $1.1 million in proceeds which, besides reducing the working capital deficit, will allow it to plan advanced development of the Cameron Lake gold property and explore its other properties. The financing agreement is subject to regulatory approval and the lifting of the trading suspension order imposed on Nuinsco by the Toronto Stock Exchange in January, 1993.