Campbell gives up Meston joint venture

Campbell Resources says it will not proceed with a joint venture proposal with Meston Lake Resources under which a subsidiary of Campbell would have spent $7.5 million to earn a 50% interest in the Joe Mann mine in northwestern Quebec.

As a result, the subsidiary will receive about 800,000 subordinate voting shares on a flow-through basis as consideration for $2 million already spent on the mine. The subsidiary will also give up its management contract with Meston which dates back to late 1983 in return for another 550,000 subordinate voting shares.

Campbell also says it has exercised its option to acquire two million subordinate voting shares of Meston from 14 Meston shareholders.

When the transactions are completed, Campbell and its subsidiary will hold about 60% of the voting rights of Meston.