Alberta private company Geopetrol Resources has been granted an option by Aur Resources (TSE) to purchase the debt (at least $4.5 million) of Belmoral Mines (TSE) owing to Aur.
Belmoral would sell its half interest in its joint venture with Aur to Aur. In turn, Aur would indemnify Belmoral against all claims, liabilities, rehabilitation and closure costs.
The joint venture says current gold prices will likely force the closure of the Ferderber and Dumont mines and a mill at Val d’Or, Que., by mid-year. Belmoral would issue a convertible note to Geopetrol which would be obligated to convert the Aur debt into 45 million shares of Belmoral. Under the control of Geopetrol (an oil and gas company), Belmoral would concentrate on acquiring oil and gas resources.
Belmoral shareholders will vote on the transaction at the annual meeting, June 25. They will also vote on a proposed 10-for-1 share consolidation.
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