Interquest sees end to financing dispute

A dispute between Interquest Resources Corp. (TSE) and Trader Resource Corp. (TSE), now before the courts, could be settled before the end of September says Interquest Chairman William Koyle.

The dispute dates back to late 1986 when a financing was arranged with Trader that would have put $1.2 million in Interquest’s treasury. The financing never closed, however, leaving Interquest in “a rather awkward position,” said Koyle at Interquest’s annual meeting recently.

Because of the litigation, says Koyle, Interquest has found it hard to raise funds. However, the company did complete a private placement to raise $300,000 in working capital.

The company’s key property is in Ontario’s Red Lake gold mining area, south of the Couchenour property and west of the Campbell mine. During 1987, two diamond drills completed 15,000 ft of drilling to a depth of about 500 ft. The best intersection was 59 ft grading 0.08 oz gold per ton including 20 ft at 0.19 oz.

A junior exploration company has an option to earn a 50% interest in the property, but has not been able to raise the funds to earn that interest. Although it has missed a payment date, it has 12 months to back in for an interest that would be diluted to less than 50% if Interquest spends money on the property itself.