Feldspar property Jay Richardson's suspended capital pool shell, Walmer Capital Corp. (WAL), has submitted a filing statement for its qualifying transaction, which is the acquisition of the Johan Beetz feldspar property in Southern Quebec. (Feldspar is a component of ceramics and glass. Johan Beetz was a Belgian man, after whom the town of Johan Beetz was named.) The seller is Jack Stoch's Globex Mining Enterprises Inc. (GMX: $0.53). Walmer Capital, which has 11.11 million shares issued, will issue two million shares and pay $100,000 to Globex. Walmer's 11.11 million shares include 7.11 million shares sold at five cents in December. It raised $355,500 from that private placement. It also raised another $512,500 in a private placement of 10.25 million subscription receipts at five cents; the subscription receipts will convert into resulting issuer shares on closing of the QT.
A technical report for the Johan Beetz project recommends a $450,000 exploration program for the first year. This work would include a 60-hole drill program. Following the two private placements, Walmer now has money to spend on this exploration work. The shell has received conditional exchange approval for its QT, and it expects to close the deal by month-end. It plans to change its name to EnerSpar Corp. If EnerSpar manages to turn the project into a producing mine, then Globex will receive a 2.5-per-cent gross royalty.
EnerSpar's board will comprise Mr. Richardson and his three fellow shell directors: Peter Andrews, Peter Bloch and John Arnold. Mr. Richardson is an accountant and a first-time shell-maker. In the early 1990s, he was a partner at KPMG LLP in London, where he led KPMG's European corporate recovery practice for insolvent companies. Since then, Mr. Richardson has been calling himself a "company doctor." One of his earlier patients was Plaintree Systems Inc., a Toronto Stock Exchange tech issuer, which had sunk to 25 cents from $21 in the four years to 1999. Mr. Richardson settled Plaintree's debts and arranged a merger with a private tech firm, after which Plaintree's stock recovered to $2. It did relatively well for about a year before falling again. Mr. Richardson's more recent patients include a TSX-listed nickel producer, Liberty Mines Inc., which had fallen to 20 cents from $4.80 in the three years to 2010. Mr. Richardson discharged Liberty from his care after seven months, by which time the stock had slipped further to 13 cents. Mr. Richardson also looked after a TSX-V mining junior, Darnley Bay Resources Ltd. (DBL: $0.385), from July, 2011, to November, 2012, during which time the stock halved to 10 cents. (It has since rolled back 1 for 5.) Mr. Richardson, who at one time was inclined to remind readers of his famous familial antecedence, no longer does that. These days, he is a senior adviser at Sinclair Range Inc., a turnaround advisory firm in Toronto. He is also the chief financial officer and a director of Nevada gold explorer Waseco Resources Inc. (WRI: $0.055). He will be the chairman and chief executive officer of EnerSpar, with one million shares or 4.21 per cent on closing of the QT.