Shareholders of Bruneau Mining (ME) will be asked to approve a new reactivation plan for the company at a joint annual and special meeting on Dec. 30.
Under the plan, Canamax Resources (TSE) and its subsidiary Rosario Resources will sell 6,272,645 Bruneau shares to Masvil Resources, a private company controlled by a Bruneau director. Bruneau, whose debt owed to Canamax will be cleared, will sell its one-third interest in the Clavos gold property near Timmins, Ont., to Canamax for $50,000. This portion of the plan must be approved by a majority of the minority shareholders.
Shareholders will also be asked to approve the following changes: the conversion of capital stock to no par value stock; the increase of authorized capital to an unlimited amount; the consolidation of outstanding shares on a 1-for-6 basis; and a name change to Bruneau Minerals. After consolidation, Bruneau will have just over three million shares outstanding. Upon shareholder approval of the proposal and subject to regulatory approval, Bruneau plans to acquire a 100% interest in a private company that owns interests in several kaolin and clay deposits in Quebec.
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