Queries Cons Gilles Lake shares are worth $800

The share certificate you hold is for a defunct company which has been merged with other firms. But it is now worth more than $800 cash and should be redeemed as soon as possible.

You should contact Central Guaranty Trust in Toronto to obtain the required transmittal documents and redeem your old share certificate.

We have traced Consolidated Gillies Lake Mines up to a company called American Reserve Mining Corp. The latter company trades on the Vancouver and Montreal exchanges at around $1.50 and is currently involved in a joint venture program with Placer Dome Inc. on the old Paymaster gold property near Timmins, Ont.

If the joint venture is successful, the old Paymaster property could be brought back into production again with gold ore being drawn from its lower levels. The Paymaster mine, which operated between 1915 and 1966, produced $41.6 million worth of gold (1.2 million oz). The mine was also the site of a tragedy in the 1930s when a cage plunged to the bottom of the main shaft killing 16 miners.

Back in June of 1954, the shares of Consolidated Gillies Lake Mines were trading at around 25 cents -50 cents while the company was busy drilling a property situated 20 miles south of Manitouwadge Lake in northwestern Ontario.

According to our records from 1954, Cons. Gillies had intersected what officials considered to be “important indications of an iron deposit” on its property southwest of the Manitouwadge area. This may explain one reason behind investor interest in the company’s shares at that time.

Over the past 40 years, at least two mergers have occurred with the first taking place in 1968 when Cons. Gillies was merged into Associated Porcupine Mines on the basis of one new share for 6.029 old shares. A total of six companies were involved in that amalgamation, which left the new company with a portfolio of several mining properties in the Timmins area.

After giving affect to the above share exchange, your old 1,000 shares would have become equivalent to about 165 new shares of Associated Porcupine. Until recently, this company used to trade on the Toronto Stock Exchange.

Late last year, (N.M., Dec 5, 1988) Associated Porcupine Mines merged with American Reserve Mining to form Paymaster Gold Mines, a wholly owned subsidiary of American Reserve. Shareholders of Associated Porcupine received $5 cash, 3/4 of a common share of American Reserve and a fractional share purchase warrant.

The warrants issued by American Reserve entitle the holder to subscribe for one additional share at a price of $2.25 until Feb 28, 1994.

All this means that your certificate can now be redeemed for about $825 cash (165 x $5), plus 123 shares of American Reserve and nearly 40 warrants.

You should get a transmittal document as soon as possible, and deliver your share certificate to Central Guaranty Trust Company at its principal offices in Toronto for the cash, shares and warrants to which you are entitled.

For more information you can also contact American Reserve in Vancouver. The company’s head office address is Suite 420, 625 Howe St., Vancouver, B.C., V6C 2T6.

]]>