Wrightbar directors oppose amalgamation with Belmoral Mines

Wrightbar reports three of the company’s five directors have indicated to Belmoral the planned merger, on the basis of seven Wrightbar shares for one share and one warrant (exercisable at $1.20) of Belmoral, is inappropriate.

Belmoral owns 17% of Wrightbar, whose Bourlamaque Twp. property near Val d’Or, Que., adjoins Belmoral’s gold-producing properties.

The three directors involved in the decision are President William Cluff, Georges Dumont and Richard Fogler. The other two directors are Belmoral representatives.

The Wrightbar property, which was closed up earlier this year, hosts two known gold zones and a copper deposit situated about 1,400 ft south of the gold zones. Wrightbar and Belmoral had been jointly exploring the gold zones.

Wrightbar says it now believes it is free to consider any proposal from other companies which might be interested in exploring the copper deposit below 500 ft.

A geologist’s report from 1966 states drilling indicates reserves of 536,358 tons grading 0.001 oz gold per ton, 0.09 oz silver and 1.31% copper with a 15% dilution factor. The drilling explored to 500 ft below surface. Owner of the property then was Quebec Manitou Mines.

Struggling of late, Belmoral recorded a first-half loss in 1989 of $6 million on revenue of $11.7 million. Lower grades at the company’s Val d’Or operations and lower gold prices are blamed for the poor financial results.

The company reports making significant reductions in its labor force, and postponement of all development at its two Val d’Or mines and all discretionary exploration expenditures requiring cash.

Meanwhile, Belmoral has acquired the Gordon Lake properties in the Northwest Territories which were previously owned by Pacific Trans-Ocean Resources. Belmoral bought the properties, comprising 78,000 acres, from Central Capital Corp. for about 1.4 million common shares, 1.54 million warrants and $225,000 in cash.

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