Business
AIM Announces Agreement in Principle to Sell Kelly Rock Limited
AIM Announces Agreement in Principle to Sell Kelly Rock Limited.
About this update from Sylla Gold Corp
[{"type":"text","content":"\n\n\n\n\nSYDNEY, NS, March 2 /CNW/ - Atlantic Industrial Minerals Incorporated\n(TSXV:ANL.V) announced today that it has agreed in principle to sell its\ncommon shares of Kelly Rock Limited to Municipal Capital Incorporated.\nAtlantic Industrial Minerals currently owns 675,000 common shares of Kelly\nRock while Municipal Capital owns one common share and 675,000 preferred\nshares of Kelly Rock. Kelly Rock has debts outstanding to Municipal Capital of\napproximately $264,000, and the Kelly Rock preferred shares held by Municipal\nCapital have approximately $928,000 of accrued and unpaid dividends\noutstanding. Municipal Capital also owns 7,136,744 common shares of Atlantic\nIndustrial Minerals.\nUnder the terms of the proposed agreement, in consideration for the\n675,000 common shares of Kelly Rock, Municipal Capital would cancel $657,846\nof debt owing by Atlantic Industrial Minerals to Municipal Capital and return\nits 7,136,744 common shares of Atlantic Industrial Minerals to Atlantic\nIndustrial Minerals for cancellation. It is expected that this transaction\nwould remove approximately $2,524,900 in obligations from the consolidated\nbalance sheet of Atlantic Industrial Minerals. The current trading price of\nAIM shares is approximately $0.12 per share. In addition, Kelly Rock would pay\na royalty to Atlantic Industrial Minerals of $100,000 in 2006; $75,000 in\n2007; and, $50,000 in 2008.\nKelly Rock currently operates the Glen Morrison Limestone Quarry and\nsupplies limestone to Nova Scotia Power Incorporated under a 7-year supply\ncontract.\nFollowing the transaction, Atlantic Industrial Minerals would have\napproximately 7.25 million shares outstanding and would continue to own the\nfollowing:\n\n(a) 50% interest in Glencoe Resources Inc. which owns the mineral rights\n to the Glencoe limestone resource;\n(b) 100% interest in the limestone resource at Port Au Port Peninsula,\n Newfoundland and Labrador;\n(c) 100% interest in Great Bras d'Or Springs Inc. water resource; and,\n(d) Real property in Lake Ainslie and processing equipment.\n\nThe proposed transaction is subject to regulatory approval, any required\nshareholder approval, negotiation of a formal binding agreement and approval\nof the Board following receipt of a financial opinion from appropriate\nfinancial advisors.\n\nAIM is a natural resource company based in ...