NWI''s MD&A on Year End involving CampbellInteresting Comments about CCH below, From March 9th, 2007:
What loans to CCH?
Interest income was higher in 2006, $178,000 versus $8,000 in 2005 as a result of interest earned on the proceeds from equity financings and on loans made to Campbell during the year. Other income of $133,000 in 2006 included amounts earned from Campbell in connection with loan set-up fees and income resulting from the reversal of prior years’ tax-related accruals.
Summary of involvement in CCH again (Old News)
Under the Operating Consulting Agreement, the Company is providing operating consulting services for Campbell’s development and mining activities, including development of the Copper Rand copper mine,
development of Campbell’s Corner Bay copper deposit and optimization of its Joe Mann gold mine.
In consideration for providing these services, the Company has received or is entitled to receive:
• a 50% interest in Campbell’s Corner Bay copper deposit;
• warrants exercisable at $0.10 per share for a two year period to purchase up to 20% of the issued and outstanding common shares of Campbell, on a fully diluted basis;
• 2,000,000 common shares of Campbell which were received upon commencement of the provision of services under the Operating Consulting Agreement;
• 1,000,000 common shares of Campbell which were received upon completion by Campbell of all of the
financings described below; and,
• fees of $25,000 plus 200,000 common shares of Campbell per month, in advance (up to a maximum of 4,000,000 common shares).
The Company has also appointed two representatives to the Board of Directors of Campbell.
More Summary and Key Quote underlined
Note 5 to the Company’s consolidated financial statements describes in detail the various agreements entered into with Campbell, described collectively as the “Campbell Transaction.” As part of the Campbell Transaction, the Company purchased 31,250,000 units of Campbell at $0.08 per unit (each a “Campbell Unit”) for $2,500,000. Each Campbell Unit consists of a Campbell common share and one-half of one Campbell common share purchase warrant. Each Campbell common share purchase warrant is exerciseable at any time for one Campbell share at a price of $0.15 per share until May 26, 2008 and an earlier date should Campbell shares trade above $0.30 for 20 consecutive days. As a result of this purchase and the other Campbell shares acquired for services rendered, the Company currently owns approximately 10.4% of Campbell.
The Campbell Transaction also provides Nuinsco with an option to purchase an additional 20% interest in Campbell at a price of $0.10 per share. The option is valid for a two-year period to May 2008, and would require an investment of approximately $7,700,000 should the Company exercise its option in full. As part of the Campbell Transaction, Nuinsco has entered into an Operating Consulting Agreement whereby Nuinsco is providing consulting services with respect to the operation of Campbell’s Joe Mann gold mine and Copper Rand copper mine for a fee of $25,000 per month plus 200,000 Campbell common shares per month to a maximum of 4,000,000 shares. The Company also received 2,000,000 Campbell common shares on commencement of the Operating Consulting Agreement and received a further 1,000,000 shares on completion of certain financings by
Campbell. The Company commenced providing consulting services on May 1, 2006 pursuant to this arrangement. Accordingly, the Company has recorded the consulting fees earned since the beginning of May
2006.
Nuinsco is entitled to receive a 50% interest from Campbell in the Corner Bay copper deposit in Chibougamau, Quebec. The Company expects this transaction will be completed in the first quarter of 2007.
--- Is Nuinsco providing the financing that will appear in the 1st Quarter News or a News release in the near future with CCH? The news of Corner Bay speeding up?
(off to the airport, see ya)
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