Well Geaorge we got News and A DEAL - A SURPRISE TO SAY THE LEAST
Blackstone acquires Sominbesa; financing
Blackstone Resources Inc BZZ
Shares issued 11,245,501 Jun 26 close $0.12
Mon 26 Jun 2000 News Release
Mr. Donald McInnes reports
Blackstone Resources has signed a letter agreement to acquire a
100-per-cent interest in Sominbesa, a sole purpose Peruvian company that
owns a 100-per-cent interest in the Berenguela property. The Berenguela
property is host to a 14-million-tonne probable resource grading 18 per
cent manganese dioxide, 1.3 per cent copper and 125 grams silver per tonne,
according to Ross Glanville, BA, Sc, PEng, MBA, in a March, 1998, report on
the Berenguela project. The deposit is located in southeastern Peru and
accessible by road, 50 kilometres from Juliaca, a town of 100,000 people.
Under the terms of the agreement, Blackstone will acquire an 80-per-cent
interest in Sominbesa following Blackstone's settlement of Sominbesa
shareholder indebtedness of $750,000 (U.S.) and upon Blackstone's
completion of financing for the first phase of a feasibility study on the
Berenguela project. This 80-per-cent interest will be purchased for such
number of shares as is needed to be issued so that the shares issued will
equal 40 per cent of the issued and outstanding capitalization of
Blackstone at the time of purchase.
The remaining 20-per-cent interest in Sominbesa may be purchased upon
commencement of production at Berenguela. The price payable will be the
issuance of such number of shares as is needed to be issued that together
with the originally issued shares would represent 20 per cent of the issued
and outstanding capitalization of Blackstone at that time.
The transaction is conditional on Blackstone completing due diligence
within a 60-day period and completing a consolidation of its existing share
capital on a 1 new common share for every 2.5 existing common shares.
Concurrent with this acquisition, Blackstone announces a preconsolidation
non-brokered private placement for two million units at 10 cents per unit.
Each unit shall be convertible, into a common share and a two-year common
share purchase warrant. Each warrant shall be exercisable at 10 cents in
the first year and 12 cents in the second. The placement is being largely
subscribed for by the principals of Blackstone.
The company has also issued 494,500 director/employee common share purchase
options. Each option shall entitle the holder to purchase a common share of
the company for a period of five years at a price of 10 cents per share.
All of the above transactions are subject to Canadian Venture Exchange
approval. The share consolidation is also subject to shareholder approval.
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