An option to purchase 500,000 shares of St. Philips (VSE) at $3 per share recently lapsed after Rio Algom (TSE) declined to proceed with the purchase.
The options were part of a larger option deal dating back to April, 1991. The agreement gave Rio the right to buy just over 50% of the St. Philips’ shares at staged prices.
The deal included a mix of options to purchase both treasury stock as well as existing shares owned by certain company insiders. The unexercised 500,000-share option covered stock owned by four company insiders and therefore does not affect the treasury.
Rio now owns about 2.4 million shares, or 30% of the outstanding stock, and still holds options to purchase an additional 1.26 million treasury shares at $3 plus a further one million treasury shares at $4 each.
St. Philips currently has about $1 million in working capital and will require additional funds depending on the size of this year’s work program at the South Kemess gold-copper property in north-central British Columbia. St. Philips holds a 40% interest in the project with El Condor Resources (VSE) holding the balance. The two companies will meet in early June to set 1992 spending plans.
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