A gain from the recent settlement of secured and unsecured debt pushed Pioneer Metals (TSE) into the black for the nine months ended Sept. 30.
Net earnings for the period were $12.4 million compared to a loss of $5.9 million in the same period last year. Gains from debt settlements during the 9-month period included $16.4 million from secured debt and $800,000 from unsecured debt.
Pioneer reports a production loss of nil for the third quarter compared with a loss of $5.7 million in the third quarter of 1990.
The settlement of Pioneer’s debt included the transfer of its 40% interest in the Premier gold mine in northwestern British Columbia to Westmin Resources and the transfer of its 100% interest in the Bonito property in New Mexico to Chase Manhattan Bank.
Chase Manhattan also received treasury shares to bring its interest up to 49.9% of Pioneer’s now 43 million outstanding shares.
The settlement with Chase and Westmin closed on Nov. 1, and if shareholders vote in favor of the plan at a meeting this month, Pioneer will be debt-free while retaining its 100% interest in the now-closed Puffy Lake gold mine in Manitoba as well as a number of exploration properties.
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