Shareholders of vse-listed Master Resources & Developments will be asked to vote Dec 8 on whether or not to allow management to sell some 5.3 million unissued shares that sit in the company’s treasury.
The sale would be made to a limited partnership called Somicom 1987 at a price of 47 cents per share.
The bulk of the resulting $2.5 million would go to dewater and rehabilitating the old Hunter gold mine in the Timmins area.
Master can earn a 50% interest in the property from coats-listed Wabigoon Resources by making this expenditure.
Work would include erecting a new headframe and a small mill on surface and doing considerable underground drifting, crosscutting and exploratory drilling.
The mine, which is serviced by an inclined, 3-compartment shaft, has six working levels to a vertical depth of 700 ft.
When the mine was last in production in 1940, ore reserves in all categories were 160,000 tons grading 0.237 oz gold per ton.
Exploration work by Wabigoon in 1985 and 1986 outlined a gold- bearing zone 1,450 ft long with an average grade across 5 ft of 0.238 oz. Within that strike length is a 950-ft section which averages 0.355 oz across 5 ft, according to President John H. Sadowski.
Master has 3,437,388 shares outstanding, trading this week at about 40 cents .
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