An affiliate of the French company Imetal SA, Mircal Mineral (Canada), will subscribe to $5-million worth of convertible debentures in Stratmin Graphite, the debentures bearing 6.5% interest payable yearly and retractable at the option of Stratmin in three years. Upon conversion of all of the debentures (the deal is subject to regulatory approval), Mircal will have a 50% voting interest in the graphite producer. Stratmin (ME) of Montreal will remain the operator of Stratmin Graphite’s Lac-des-Iles graphite project north of Montreal.
Meanwhile, Exploration Duverny, a 65.9% subsidiary of Stratmin, and Nova-Cogesco Inc. reported entering into an option agreement (subject to regulatory approval) with Rio Algom Exploration concerning property in Duverny Twp., near Amos, Que. (Duverny has a 70% interest in the property and Nova-Cogesco a 30% interest.)
Rio may earn a 60% interest in the property by making payments totalling $75,000 and by spending $750,000 on exploration work during a 4-year period. Rio may earn an extra 10% interest by spending an additional $500,000 during the fifth year.
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