Business
AIM Finalizes Agreement to Sell Kelly Rock Limited
SYDNEY, NS, Dec. 17 /CNW/ - Atlantic Industrial Minerals Incorporated (TSXV:ANL.V) ("AIM") announ...
About this update from Sylla Gold Corp
[{"type":"text","content":"\n\n\n\nSYDNEY, NS, Dec. 17 /CNW/ - Atlantic Industrial Minerals Incorporated\n(TSXV:ANL.V) ("AIM") announced today that it has entered into a formal\nagreement with respect to its previously announced plan to sell its common\nshares of Kelly Rock Limited to Municipal Capital Incorporated. Kelly Rock\ncurrently operates the Glen Morrison Limestone Quarry and supplies limestone\nto Nova Scotia Power Incorporated under a 7-year supply contract expiring in\n2010. AIM currently owns 675,000 common shares of Kelly Rock while Municipal\nCapital owns one common share and 675,000 preferred shares of Kelly Rock.\nKelly Rock has debts outstanding to Municipal Capital of approximately\n$264,000, and as of August 31, 2008, the Kelly Rock preferred shares held by\nMunicipal Capital, the aggregate accrued and unpaid dividends on the preferred\nshares were $1,113,750, for a total obligation upon redemption of the\npreferred shares of approximately $1,788,750. Municipal Capital also owns\n7,136,744 common shares of AIM.\n\n\nUnder the terms of the agreement, in consideration for the 675,000 common\nshares of Kelly Rock, Municipal Capital would provide sufficient funds to\nKelly Rock to allow it to repay its outstanding debt owed to the Corporation,\nwhich was approximately $872,527 as of August 31, 2008. AIM, in turn, would\nrepay certain debt it owes to Municipal Capital, which was approximately\n$771,632 as of August 31, 2008. Municipal Capital would also return 3,615,872\nof its AIM common shares to AIM for cancellation. It is expected that this\ntransaction would remove approximately $2,836,302 in obligations from the\nconsolidated balance sheet of AIM. The current trading price of AIM shares is\napproximately $0.11 per share. In addition, Kelly Rock would pay aggregate\nroyalties to AIM of $225,000 in respect of production at the Glen Morrison\nLimestone Quarry over the 2008, 2009 and 2010 fiscal years of AIM in lieu of\nthe current royalty, which would be canceled. If the transaction is approved\nby shareholders and completed, David MacKenna, Glen Dexter and Barclay\nCunningham intend to resign as officers and directors of AIM.\n\n\nFollowing the transaction, Atlantic Industrial Minerals would have\n10,770,116 common shares outstanding and would continue to own the following:\n\n\n- 50% interest in Glencoe Resources Inc. which o...