Belmoral sells stake in Canreos Minerals

In a private transaction, Belmoral Mines (TSE) will sell its 38% interest in Canreos Minerals (VSE) to Tor Jensen, president of Canreos. As part of the agreement, Belmoral will also write off a $45,000 debt. The sale will end a working relationship that stretches back to the mid-1980s. In 1988, Belmoral upped its stake in Canreos to 40% from 14%, turning the cash-strapped junior into an active exploration company with several promising claim groups in northern Ontario, including a once-developing gold property in the Missanabie area.

But like many juniors in the post- flow-through era, Canreos has been suffering from a financing squeeze. The company has been inactive since late 1988, and its shares now trade at 3 cents. Canreos says it will try to reverse its negative capital position and attempt to reactivate Canreos for either mining exploration or some other endeavor.

Recently, Belmoral has been shedding many of its assets in an attempt to rid itself of an $8.5 million debt load, but President Gordon Strasser said proceeds from the Canreos would be nominal.