Copper Lake ResourcesLtd. said May 5 that it is raising its stake in the Marshall Lake copper-zincproject in Ontario to 68.75%.
The company, which holds a 37.50% interest in the property, reached an agreement toacquire the 31.25% stake owned by privately held, U.K.-based Marshall Lake Mining Ltd.
In exchange, Copper Lake will issue up to 34,268,738 of its commonshares and a principal amount of C$350,000 of 12% five-year unsecured convertibledebentures to Marshall Lake. The consideration is valued at nearly C$2.1 million.
The debentures are convertible into units, comprised of 1 shareand 1 warrant, at 5.5 cents per unit for the first year and 10 cents per unit thereafter.The warrants' exercise price will be equal to the conversion rate of the units whenissued.
Marshall Lake is entitled to nominate two individuals for electionto Copper Lake's board, which will be expanded to five directors.