TORONTO and MONTREAL - NUINSCO RESOURCES of Toronto has agreed to invest $2.5 million in Montreal-based CAMPBELL RESOURCES, which is raising a total of $16.5 million. The deal will get Campbell out from under the Companies' Creditors Arrangement Act, and Nuinsco will receive a 10% interest in Campbell and warrants to purchase a further 20%.
Nuinsco will become the contract operator of Campbell's Joe Mann and Copper Rand mines near Chibougamau, Quebec. More than $60 million has been spent on redevelopment of the Copper Rand mine over the past five years, and Nuinsco's aim is to see production double to 350,000 tonnes of copper annually. This will take another $5 million and four months from the completion of the financing.
Finally, Nuinsco will receive a 50% interest in Campbell's advanced Corner Bay copper project, also near Chibougamau. The deposit can be readied for initial production over the next year at a cost of about $9 million to $11 million.
Details of the proposed financing are posted at both www.Nuinsco.ca and www.Campbell-Resources.com.