Cassiar settles insurance claim

An investment group holding 49.62% of Cassiar Magnesium (CIR-T) says its decision to terminate senior management, including former chairman Clifford Frame, was done “in the best interest of all shareholders.”

After acquiring control of Cassiar Magnesium, the Greyling Group, based in Dallas, Tex., unveiled plans to introduce and install its own nominees to the board at the next annual meeting, scheduled for July. In light of this development, Frame left the company on June 1, along with former president Ken Bates. Both men also resigned as directors.

Michael Burns was appointed chairman until the annual meeting. The remaining board members are Ken Berkeley, Carl Freitag and James Hunt. The Greyling Group is a diversified investment trust specializing in the oil and gas sector.

A few days later, Cassiar Magnesium reported it had received $21.4 million as part of an insurance settlement related to a fire at the company’s asbestos-mining operation in northern British Columbia.

At last report, the properties contained 3.5 million tonnes of extractable chrysotile fibre resources in surface stockpiles and tailings. The mine also hosts a resource of 32 million tonnes grading up to 10% chrysotile. The tailings, surface and mine ore all contain 23.5% magnesium metal. Cassiar had hoped to develop and construct a large-scale magnesium production plant as a “cornerstone” of its new business program and plan. The separation of chrysotile fibre from the serpentine would be the first stage of the larger magnesium metal project.

The new management has not yet indicated whether it will proceed with these plans or pursue other business opportunities.