SYDNEY, NS, March 2 /CNW/ - Atlantic Industrial Minerals Incorporated
(TSXV:ANL.V) announced today that it has agreed in principle to sell its
common shares of Kelly Rock Limited to Municipal Capital Incorporated.
Atlantic Industrial Minerals currently owns 675,000 common shares of Kelly
Rock while Municipal Capital owns one common share and 675,000 preferred
shares of Kelly Rock. Kelly Rock has debts outstanding to Municipal Capital of
approximately $264,000, and the Kelly Rock preferred shares held by Municipal
Capital have approximately $928,000 of accrued and unpaid dividends
outstanding. Municipal Capital also owns 7,136,744 common shares of Atlantic
Industrial Minerals.
Under the terms of the proposed agreement, in consideration for the
675,000 common shares of Kelly Rock, Municipal Capital would cancel $657,846
of debt owing by Atlantic Industrial Minerals to Municipal Capital and return
its 7,136,744 common shares of Atlantic Industrial Minerals to Atlantic
Industrial Minerals for cancellation. It is expected that this transaction
would remove approximately $2,524,900 in obligations from the consolidated
balance sheet of Atlantic Industrial Minerals. The current trading price of
AIM shares is approximately $0.12 per share. In addition, Kelly Rock would pay
a royalty to Atlantic Industrial Minerals of $100,000 in 2006; $75,000 in
2007; and, $50,000 in 2008.
Kelly Rock currently operates the Glen Morrison Limestone Quarry and
supplies limestone to Nova Scotia Power Incorporated under a 7-year supply
contract.
Following the transaction, Atlantic Industrial Minerals would have
approximately 7.25 million shares outstanding and would continue to own the
following:
(a) 50% interest in Glencoe Resources Inc. which owns the mineral rights
to the Glencoe limestone resource;
(b) 100% interest in the limestone resource at Port Au Port Peninsula,
Newfoundland and Labrador;
(c) 100% interest in Great Bras d'Or Springs Inc. water resource; and,
(d) Real property in Lake Ainslie and processing equipment.
The proposed transaction is subject to regulatory approval, any required
shareholder approval, negotiation of a formal binding agreement and approval
of the Board following receipt of a financial opinion from appropriate
financial advisors.
AIM is a natural resource company based in Sydney, Nova Scotia, engaged
in the production and sale of industrial minerals. The common shares of
Atlantic Industrial Minerals Incorporated are listed on the TSX Venture
Exchange. (Listing Symbol: ANL)
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED, NOR DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF, THIS NEWS RELEASE.
