Firesteel to off-load debt, sell part of BlacksteeFiresteel to off-load debt, sell part of Blacksteel
2009-03-06 15:26 EST - News Release
Mr. Walter Wakula reports
FIRESTEEL ANNOUNCES SALE OF 200,000 BLACKSTEEL SHARES, ELIMINATION OF $500,000 DEBT, GAIN OF $421,000 AND GRANT OF ADDITIONAL BLACKSTEEL SHARES
Firesteel Resources Inc. has provided the following corporate developments:
- Firesteel will be undertaking a non-brokered private placement financing by offering up to 200,000 Class A common shares of its 4.4 million share holdings in affiliated company Blacksteel Oil Sands Inc. at an offering price of 50 cents per share for gross proceeds of $100,000;
- Early termination of loan and security agreements dated Sept. 28, 2007, as subsequently amended, between Firesteel and Blacksteel in accordance with termination provisions of these agreements. Early termination consisted of an exchange of $500,000 in Firesteel debt, plus accrued interest, for one million Blacksteel shares held as collateral for this debt;
- A pretax gain on sale of $421,000 on disposition of the one million Blacksteel shares in the debt-for-shares exchange, less a $96,000 loss on disposition of the debt due to reversal of previously recorded net accretion gains;
- The grant by Blacksteel of an additional 945,000 Blacksteel shares representing 20 per cent of the company's holdings in Blacksteel following termination of an agreement with an investment bank for a February, 2009, initial public offering of Blacksteel shares.