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by Stockwatch Business Reporter
The TSX Venture Exchange fell 4.20 points to 559.78 Tuesday. Stuart Olley's first capital pool shell, Cassowary Capital Corp. Ltd. (BIRD: halted), plans to acquire a Scottish gold-copper explorer, Western Gold Exploration Ltd., for the shell's qualifying transaction. The shell will roll back 1 for 2.5, leaving it with 5,600,040 shares issued, then issue 13,066,760 shares to its target's shareholders. In connection with the QT, the shell and its target plan to sell a private placement, but the terms are not yet available.
Western Gold was formed in 2016. It has two properties, Knapdale and Lagalochan, which cover a combined 17,240 hectares in western Scotland. Each property is a gold and base metals (especially copper) target for the company. At Knapdale, there used to be a mine, the Stronachullin lead mine that was in production in the 1800s. Western Gold is working on a technical report for its properties.
The chairman of Western Gold is Harry Dobson, 71, a mining promoter with an address in Monaco. He was a partner at Yorkton Securities Inc. In the late 1980s, he and Brian Hinchcliffe managed a Honduran gold miner, American Pacific Mining Co. Inc., which traded up to $7.13 under their watch. Later, in 2002, the duo founded Kirkland Lake Gold Inc., an Ontario gold miner that peaked at $21.03 while they were there. Mr. Hinchcliffe left Kirkland Lake in 2014, and Mr. Dobson left the following year. The company has since merged with Newmarket Gold Inc. to form Kirkland Lake Gold Ltd. (KL: $53.39). Mr. Hinchcliffe, 64, lives in New York and was a Goldman Sachs commodities trader from 1978 to 1998. He and Mr. Dobson are escrow shareholders, but not directors, of Cassowary Capital.
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