Embed Size (px)
Citation preview
Neither the Ontario SecuritieExchange nor any other simila siEtaw...! w.aws HINDON 010passed upon the merits of the securities offered hereunder and any representation to the contrary is an offence.
STATEMENT OF MATERIAL FACTS
CAM MINES LIMITED
Offering of up to 500,000 shares, with a par valueof $1.00 each, in the capital stock of CAM Mines Limited("the Company"), to provide the Company with notless than $125,000.
Hector M. Chisholm St Co. Limited, 82 Richmond Street West, Toronto, Ontario, (hereinafter called the "Company's Agent") will offer to the public the shares of the Company by means of a fixed price offering on the Floor of The Toronto Stock Exchange at a price to be determined by the Company with the approval of The Toronto Stock Exchange. For particulars of the offering reference is made to Items l, 2, 3 and 9. The purpose of this offering is detailed in Item 4.
The offering will take place on a date to be specified by the Company and announced by The Toronto Stock Exchange, within a period of not less than five business days and not more than twenty-one business days after the date of the mailing of this Statement by the Company. A book will be maintained on the Floor of The Toronto Stock Exchange to receive purchase orders between the hours of 9:00 a.m. and 9:30 a.m. on the day of the offering. The Company's Agent may reserve not more than 75^ of the offered shares to fill orders of its own clients. If, in the opinion of The Toronto Stock Exchange, a bona fide public distribution has not been accomplished, the offering may be cancelled by the Exchange.
This offering is subject to sufficient orders being received to provide to the Company a minimum of $125,000. If sufficient purchase orders are not received to provide the Company with $125,000, the offering will be withdrawn by the Company.
HECTOR M. CHISHOLM S CO. LIMITED 82 Richmond Street West
Toronto, Ontario Tel.: 362-4731
THE SECURITIES OFFERED HEREUNDER ARE SPECULATIVE.
1. Give brief details of the circumstances relating to the offering of the securities and any material changes in the affairs of the issuer.
(a) Fixed price offering of a maximum of 500,000 shares
of the company to raise a minimum of $125,000, all as detailed
in Item 3.*
(b) The only material changes in the affairs of the issuer
since the Statement of Material Facts dated June 23, 1971, which
was accepted for filing by The Toronto Stock Exchange on July 23,
1971, are as follows:
(i) On September 16, 1971, at the request of the
underwriter (Hector M. Chisholm k Co. Limited) , the
Company withdrew the proposed offering of 400,000
shares of the Company, which had been qualified by
the aforementioned Statement of Material Facts, due
to the poor market conditions prevalent at the time.
(ii) By agreement dated September 30, 1971, the
Company was granted an option to purchase two parcels
of land located in Lorne Township near Sudbury, Ontario.
Refer to Items 12(3) and 15 s, 17 (8).
(iii) Eighteen unpatented mining claims were staked
for the Company contiguous to the optioned lands in
Lorne Township, Ontario. Refer to Items 12(4) and
15 i 17 (9).
(iv) By agreement dated November 6, 1971, the Company
was granted an option to purchase 104 mining claims
located in Hindon and Stanhope Townships near carnarvon,
Ontario, and subsequently the Company entered into an
agreement with Imperial oil Limited for further
exploration of the claims. The final documentation
for the agreement with Imperial has not yet been completed
for execution by the parties. Refer to Items 12(1)
and 15 6, 17 (10) .
l.(b) Cont'd
(v) By an amending letter agreement dated December
22, 1971, between the Company and Keevil Mining Group
Limited, covering the 63 mining claims near Favourable
Lake, Northwestern Ontario, the date by which Keevil
must incorporate a new company has been extended to
April 29, 1975 from April 29, 1972, and a partnership
has been created between the parties to the agreement.
Refer to Item 12(7).
(vi) The Company acquired 16 unpatented mining
claims located in the Raleigh Lake area of Ontario.
Refer to Item 15 s 17 (5).
(vii) The Company participated in a joint prospecting
venture under which it acquired a 3096 interest in two
separate groups of claims located in two separate
areas in British Columbia. Refer to Item 15 Se 17 (6 s. 7)
2. Set out the description, designation and number of shares being offered by the issuer or selling shareholder. If any of the shares being offered are to be offered for the account of a selling shareholder, name such shareholder and state the number of shares owned by him, the number to be offered for his account and the number to be owned by him after the offering.
The following shares in the capital stock of the
Company will be offered on a fixed price offering basis under
the terms of this statement of Material Facts.
A maximum of 500,000 shares of the Company, to provide
at least $125,000 to the Company, will be offered by the Company
through the Company's Agent, all as detailed in Item 3.
3. Set out the price to the public, underwriting discounts or commissions and the estimated net proceeds to the issuer or selling shareholder, on both a per share and an aggregate basis. If it is not possible to state the price to the public or the underwriting discount or commission, the method by which they are to be determined shall be explained. Give the range of the market price during the previous ninety days.
By an Agreement in-writing dated the 15th day of November,
1971, between the Company and Hector M. Chisholm s Co. Limited,*
82 Richmond Street West, Toronto, 'Ontario, (herein sometimes re
ferred to as "the Company's Agent"), the company's Agent has agreed to
offer for gale a maximum of 500,000 shares of the Company at a time
when the Company elects to so instruct the Company's Agent to
proceed, such offering to provide to the Company a minimum of
$125,000. The shares shall be offered at a fixed price which
shall be at a discount from the last sale price on the Toronto
Stock Exchange on the day prior to the offering taking place.
Such discount shall not exceed the maximum discount allowed by
the Toronto Stock Exchange. A book will be maintained on the
Floor of the Exchange from 9:00 a.m. to 9:30 a.m. prior to the
opening of trading on the day so determined for such offering,
which day will be announced by the Toronto Stock Exchange, and
the Company's Agent will receive subscriptions from other members
of the Toronto Stock Exchange. The Company's Agent may reserve
not more than 75?6 of the offered shares to fill orders of its own
clients. If sufficient purchase orders are not received to
provide the Company with $125,000, the offering will be withdrawn
by the Company. Also, if, in the opinion of the Toronto Stock
Exchange, a bona fide public distribution has not been accomplished,
the offering may be cancelled by the Toronto Stock Exchange.
3. Cent'd
The maximum discount allowed by the Toronto Stock
Exchange follows:
If the closing market price on theday prior to the offering date is: Maximum Discount Price
$ .20 and up to $ . 50 2 5'fc below closing market price$ .51 and up to $1.00 2^ below closing market price$1.01 and up to $2.00 l &ft, below closing market price$2.01 and up to 55.00 1 5"fc below closing market price?5.01 and above 10^6 below closing market price
The Company and its Agent have the privilege to withdraw
or postpone the offering until 9:00 a.m. on the day of the proposed
distribution should any event occur or situation develop which, in
the opinion of either, would make it inexpedient or inadvisable
to make the offering, or market conditions should be such that,
in the opinion of either, it would be inexpedient or inadvisable
to make the offering, and in the event of such withdrawal or post
ponement, all the Company's and the Company's Agent's obligations
shall be at an end.
The prices at which shares of the capital stock of the
Company are intended to be offered according to the above-
recited formula do not represent net prices to the Company.
The Company's Agent will be entitled to commissions payable by
the Company with respect to such offerings at the regular qommission
rates as specified by the By-laws and Rules of the Toronto Stock
Exchange. The purchaser of any shares under the offering will be
required to pay the regular commission rates as specified in the
By-laws and Rules of the Toronto Stock Exchange.
During the 90-day period prior to the date of this
Statement the Company's shares have been traded at a low of
20.5 cents per share and a high of 39 cents per share, both
during the month of November.
4. State the principal purposes for which the estimated net proceeds to be derived by the issuer from the sale of the shares to be offered are intended to be used and the approximate amount intended to be used for each such purpose. If any material amounts of other funds are to be used in conjunction with the proceeds, state the amounts and sources of such other funds.
The Balance Sheet of the Company as at October 31, 1971,
included in this Statement of Material Facts, reflects a working
capital deficiency of approximately 6,000. Between November l,
1971 and January 11, 1972, the Company's working capital decreased
by approximately $21,000, leaving a current working capital
deficiency of approximately 327,000.
The funds raised by this offering will be used to eliminate
the Company's current working capital deficiency and to cover
administrative expenditures estimated at ?2,500 per month, as well
as the preliminary costs of the following projects and, depending
on the results of the following programmes and the availability
of funds, to proceed with further exploration and to option or
otherwise acquire or participate in mineral or petroleum exploration
projects of merit from time to time.
Specific Projects:
1. Savant Lake claims- geological mapping, linecutting and ground
geophysical survey.................................... $20,000Refer to Items 12(2), 14(2) and 15 Se 17(4)
2. Hindon/Stanhope Township project- geological mapping, prospecting, linecutting
and ground geophysical surveys (5096 participation).... ? 18,000 Refer to Items 12(1), 14(1) and 15 Se 17(iQ)
3. Lorne Township - Fensom project- linecutting and ground geophysical surveys............ 5 8,000
Refer to Items 12(3 Se 4), 14(3) and 15 s, 17(8 Se 9)
Option Payments Tentatively Required During Current Year:
1. Croft Property - Bancroft area- annual option payment due March l, 1972............... ? 8,000Refer to Items 12(8), 14(8) and Auditors' Note 4
2. Savant Lake claims - maximum payment dueOctober 31, 1972........................................ $.11,600
3. * Fensom project - due September 30, 1972 . . . . . . . . . . . . . . . . 5 5,000
4. Hindon/Stanhope project, due June 30, 1972(in lieu of shares) . . ... ... . .... .. ..... . ... .. . ...... ... $ 7,500
5. State the laws under which the issuer was incorporated and whether incorporated by letters patent or otherwise or under a particular part of an incorporating statute dealing with mining companies.
The company was incorporated as Asteria Quebec Mines
Limited under the laws of the Province of Quebec by Letters
Patent dated January 25th, 1938, which were subsequently
amended as follows: Supplementary Letters Patent (hereinafter
called S.L.P.") dated September 28th, 1948, re-organized the
share capital on the basis of one new share for five shares
held and the name changed to Consolidated Asteria Mines Ltd.
By S.L.P. dated May 31st, 1955, the capital was re-organized ,
on the basis of one new share for three shares held and the
name changed to Canadian Astoria Minerals Ltd. By S.L.P.
dated March 8, 1963, the authorized capital of the company was
increased from 54,000,000 to 55,000,000 divided into 5,000,000
shares of 51.00 par value. By S.L.P. dated December 2nd, 1963,
the capital was re-organized on the basis of one new share for
four shares held and the name changed to CAM Mines Limited.t
By S.L.P. dated November 13th, 1967, the authorized capital of
the company was increased from 53,000,000 to 55,000,000 divided
into 5,000,000 shares of 51.00 par value.
6. Give names, addresses and chief occupations for the past five years of the officers and directors of the issuer.
Office Held
President and Director
Name and Address
Vincent Noble Harbinson 10 Benvenuto Place Toronto 7, Ontario
Executive Vice-President and Director
Francis Dale Corman 5090 Lakeshore Road Burlington, Ontario
Treasurer and Director
Frederick W. Pooley 67 Sun Row Drive Weston, Ontario
Secretary John Barry Sage 51 Winston Grove Toronto 18, Ontario
Assistant Secretary
Director
Director
Maureen Diane Mccallum Apt. 100140 High Park Avenue Toronto 9, Ontario
Maxwell Bruce, Q.C. l May Square Toronto 287, Ontario
Melville William Rennick 234 Donlea Drive Leaside, Ontario
Occupation
Chairman of the Board of Spooner Mines and Oils Limited, and holds executi positions with other resource companies, and is sole proprietor of Professional Management Services, mining and petroleum management.
Mining and financial con sultant, President of NBU Mines Limited and Noble Mines S Oils Ltd. and director and officer of other resource companies, prior to which he was a Stockbroker in Toronto anc prior thereto, a mining securities analyst.
Financial consultant and Vice-President, Finance of Canada Geothermal Oil Ltd. prior to which he was an accountant and prior there to a mining analyst.
Secretary-Treasurer of Spooner Mines and Oils Limited, Noble Mines St Oil Ltd. and other resource companies, prior to which he was Assistant Secretary of Kerr Addison Mines Limited and other associat mining companies.
. ; . ; ; i. -*'
Secretary, formerly studer University of Toronto.
Partner in the firm of Manning, Bruce, Macdonald and Macintosh, Barristers and Solicitors.
Consulting Geologist for Spooner Mines and Oils Limited and other associ ated resource companies.
7. State the share capitalization of the issuer showing authorized and issued capital.
The authorized capital of the Company consists of
5,000,000 shares of the par value of $1.00 each of which there
are issued and outstanding 3,871,453 fully paid and non-assessable
shares.
8. Give particulars of any bonds, debentures, notes, mortgages, charges, liens or hypothecations of the issuer.
None
9. Outline briefly the manner in which the shares being offered are to be distributed, giving particulars of any outstanding or proposed underwriting or option agreement, .including the name and address of each underwriter or optionee. Give similar particular of sub-underwriting or sub-option agreements outstanding or proposed to be given and particulars of any assignments of any such agreements
The shares being offered by the Company will be distributed
by the Company's Agent through the facilities of the Toronto Stock
Exchange in the manner and at the price described in Items 2 and 3
hereof.
There are no sub-underwriting or sub-option agreements
given or proposed to be given.
10. Give name and address of any person or company who beneficially owns, directly or indirectly, in excess of ID'% of the shares of any company named in answer to Item 9 hereof and the number and percentage of equity shares so owned.
HECTOR M. CHISHOLM Se CO. LIMITED
Name and Address .
Hector M. Chisholm41 St. Leonards CrescentToronto, Ontario
George W. Chisholm 15 Ava Road Toronto, Ontario
C. Harvey Raven 64 Arjay Crescent Willowdale, Ontario
Number of Shares
271
107
100
Equity
2096
11. Give particulars of any payment in cash or securities of the issuer made or to be made to a promoter or finder in connection with the proposed underwriting.
None
12. Give brief particulars of important properties owned, leased, held under option or operated or presently intended to be owned, leased, held under option or operated by the issuer.
(1) Option on 104 mining claims located in two groups, which
are contiguous except for a two-claim section of patented land,
in Hindon and Stanhope Townships near Carnarvon, Ontario. Imperial
Oil Limited have agreed to take a 5096 interest in the project and
will be the operator of the exploration programme. Refer also
to items 14(1) and 15 5. 17 (10).
(2) Option on 116 unpatented mining claims in the Savant
Lake area of the Patricia Mining Division of Ontario located in
four separate groups in Boucher and Conant Townships and Evans
Lake area approximately 25 miles north of the new base metal
discoveries at Sturgeon Lake. Refer also to Items 14(2) and 15
6, 17(4).
(3) Option on two parcels of land (the Fensom property)
covering a total of 314 acres and including both the surface and
mineral rights located in Lorne Township near Sudbury, Ontario.
Refer also to Items 14(3) and-15 s, 17(8).
(4) 18 unpatented mining claims staked contiguous to the
Fensom property in Lorne Township near Sudbury, Ontario. Refer
also to Items 14(3) and 15 z 1 7(9).
(5) 2 0^o working interest in 484 mining claims located in the
Sturgeon Lake area of Northwestern Ontario. Refer also to Items
14(4) and 15 S. 17(1) .
(6) 1/6 interest in 1,385 claims staked in the Cape Smith,
Wakeham Bay area of Ungava, Northwestern Quebec. Refer also to
Items 14(5) and 15 Se 17(2).
(7) 40?6 interest in approximately 63 mining claims in Favourable
Lake Area of Northwestern Ontario, under working option to Keevil
Mining Group Limited. Consideration is being given to proceeding
to bring the claims to patent.
12. Continued...
(8) Option on 2,560 acres in cardiff and Faraday Townships,
provisional county of Haliburton (formerly the Croft property of
Bi-Croft Uranium Mines Limited). Refer also to Item 14(8).
(9) 410 acres in Rouyn Township, Noranda-Rouyn, Quebec, being
held pending substantial increase in price of gold.
(10) 11 mining claims, Coleman Township, Cobalt, Ontario,
being held pending substantial increase in price of silver.
13. Indicate whether any property referred to in Item 12is without a known body of commercial ore or reserves of recoverableoil and gas.
To the knowledge of the signatories hereto and to the
knowledge of the Company's consulting engineers, there is no
known body of commercial ore on any of the Company's properties
described in item 12 hereof.
14. Give brief particulars of the exploration and development work of the issuer during the past year and the results thereof.
1. Hindon/Stanhope Project, Ontario
Based on geological information received concerning the
possible continuity of a recent discovery of disseminated copper
made along a rock-cut uncovered during construction of a new road,
the Company has optioned 104 mining claims near Carnarvon, Ontario.
An exploration programme consisting of further prospecting,
geological mapping, magnetometer and induced polarization surveys
has been recommended by E. W. Bazinet, P.Eng., in his report
dated.November 25, 1971, which has been filed with the Ontario
Securities Commission and the Toronto Stock Exchange, and is
available for inspection at each of those offices. Imperial Oil
Limited has agreed to take a 5Qy0 interest in the project
and is the operator of the exploration programme which is currently
in progress. Refer also to Items 4, 12(1) and 15 Se 17(10).
2. Savant Lake Area, Northwestern Ontario
Based on geological data which indicate a good grade
zinc showing as well as similar rock structure to that found in the
Sturgeon Lake area of Northwestern Ontario, the Company optioned
116 claims in the Savant Lake area. An exploration programme
consisting of geological mapping, magnetometer, electromagnetic
and Turam surveys as well as diamond drilling has been recommended
by O. E. Leigh, P.Eng., associated with the firm Derry, Michener
S Booth, in his report dated June 9, 1971, which has been filed
t with the Ontario Securities Commission and the Toronto Stock Exchange,
and is available for inspection at each of those offices. The
Company is planning to proceed with some of the survey work as soon
as possible in order to maintain the claims in good standing.
Refer also to Items 4, 12(2) and 15 6c 17(4).
14. Continued . . ^
3. Lorne-Fensom project, Ontario
Based on the encouraging knowledge of a previous
exploration programme which had outlined a mineralized zone estimated
to contain small tonnages of probable reserves averaging S.17% zinc
and possible reserves averaging 4.79% zinc, the Company has optioned
a patented lot and staked 18 contiguous mining claims which
together cover approximately 1,040 acres located southwest of
Sudbury, Ontario. An exploration programme consisting of
magnetometer and V.L.F. electromagnetic surveys as well as diamond
drilling has been recommended by E. W. Bazinet, P.Eng., in his
report dated November 20, 1971, which has been filed with the
Ontario Securities Commission and the Toronto Stock Exchange
and is available for inspection at each of those offices. The
Company is planning to proceed with the survey work as soon as
possible. Refer also to Items 4, 12(3 6 4) and 15 Se 17(8 6 9).
4. Sturgeon Lake Area (Spooner Group/Granges), Ontario
484 mining claims in the Sturgeon Lake area of Ontario,
in which the company holds a 20% interest, were covered by airborne
magnetometer and electromagnetic surveys and subsequently were
optioned to Granges Exploration (Canada) AB, which company has
carried out ground magnetic and electromagnetic surveys over the
claims and is currently diamond drilling. Granges can earn a 60^
interest in the claims by spending 5500,000 on exploration of the
property over a three-year period ending in March, 1974. Refer
also to Items 12(5) and 15 s, 17(1).
5. Ungava (Cape Smith-Wakeham Bay Area)
During the past summer a combined electromagnetic and
magnetic survey was conducted by helicopter over this area which
extends for forty-three miles in a southwest-northeast direction
in the Ungava Nickel Belt. The area is known to have a favourable
14. Continued
(5) Ungava (Cape Smith-Wakeham Bay Area) - continued
environment for the occurrence of nickel and asbestos deposits.
A large number of electrical anomalies were found, and it has been
recommended by the geophysical consultant that some of the anomalies
should be investigated by regional prospecting while others should
be covered by a more intense exploration programme. Refer also
to Items 12(6) and 15 s. 17(2).
6. . Fox-Gibraltar Area, British Columbia
During the summer of 1971, the Company entered into a
small joint prospecting venture with two other companies covering
several favourable areas in British Columbia. The venture resulted
in the staking of two groups of claims, one of which consists of
30 claims located northeast of Whitestone Lake in the Gibraltar
area. Copper anomalies on adjacent claims have been indicated
by a geochemical survey conducted by another company, and the
members of this venture have decided to maintain this claim group
for the present time because of its favourable location. Refer
also to Item 15 5. 17(6).
7. Ram-Prince George Area, British Columbia
A second group of 40 claims was also staked as a result
of the joint venture, this being located north of Prince George
and west of the Hart highway. Assays from soil samples indicated
a significantly long molybdenum anomaly as well as erratic copper
indications. The claim group is being maintained for the present
time. Refer also to Item 15 St 17(7).
8. Bancroft, Ontario, Area
The Company's claims in this area were retained in good
standing and general prospecting was carried out in adjacent areas
with no significant results. Refer also to Item 12(8).
14. Continued
9. Australia (Onslow Syndicate)
The property was geologically examined and one diamond
drill hole was put down which cut minor bare metal mineralization.
No further work has been done on the property and the lease
applications have been withdrawn. Refer also to Item 15 St 17(3).
10. Raleigh Lake Area, Ontario
A number of anomalies were indicated from an airborne
geophysical survey but no follow-up work has been planned to
date. Refer also to Item 15 Se 17(5).
15. Give brief particulars of property proposed to be acquired by the issuer or any affiliate or acquired by the issuer or any affiliate within the previous three years, including the name and address of the vendor and the cost or proposed cost thereof to the issuer or any affiliate, and if any such vendor is or was an insider or promoter of the issuer or an associate or affiliate of any insider or promoter of the issuer, so state and indicate the nature of the relationship.
and,
17. If the property referred to in Item 15 was or is to be paid for by the issuance of shares of the issuer or any subsidiary, give (a) the number of shares of the issuer and any subsidiary issued to or to be issued to the vendor after giving effect to such transaction, and (b) the number and, if more than 5^ of the shares presently outstanding, the percentage, of shares of the issuer and any subsidiary owned or to be owned, by the vendor after giving effect to the transaction. if the vendor is a company, give the names and addresses of the insiders of the company.
15. 6 17.
Area or No.
of Claims
Location
InterestVendor
Consideration
MININ
1.2,
484 mining claims
Refer also to
Items 12(5)
and 14(4) .
1,385 claims
Refer also
to Items
12(6) and
14(5) . *
Sturgeon Lake
Area, Northwestern Ontario
Cape Smith-Wakeham
Bay area
of Ungava,
Northwestern Quebec
2096 participation
1/6 participation
Four Mineral
Lease Applications -
sub sequently withdrawn
Refer also
to Item
14(9). Cloncurry, Queensland,
3096 interest
Australia
Spooner Mines and
Oils Limited (under
syndicate agreement)
Staked
Joint Venture
4. 116
unpatented mining
Savant Lake
area, claims.
Refer also
to Patricia
Mining
Items 12(2)
and 14(2).
Option to
acquire a
Eric W.
Hadley, 10096
interest (subject
c/o Red
FoxDivision,
Ontario, to
a 196
net smelter
Construction Ltd.,
in Boucher
and Conant return
royalty to
vendor) R.R.
No. 3,
Townships and
EvansLake area.
Thunder Bay,
Ontario
5. 16
unpatented mining
Raleigh Lake
area, claims.
Refer also
Ontario
to Item
14(10).
10096 interest
(subject Donald McKinnon,
to a
196 net
smelter P.O.
Box 1170,
return royalty
to vendor)
Timmins, Ontario
30 claims
(Fox Group)
Refer also
to Item
14(6).
40 claims
(Ram Group)
Refer also
to Item
14(7).
Northeast of
Whitestone Lake,
Gibraltar area,
British Columbia
West of
Hart Highway,
50 miles
north of
Prince George,
British
3096 interest
)) Joint Venture
3096 interest
$26,912 being 20^
of acquisition
and survey
costs
514,727 being one-sixth
of acquisition costs
$5,000, being a one-third
participation in
the venture
511,600 for
option good
to Octobe
31, 1972
at which
time CAM
may purchase outright,
subject to
196 royalty,
at a cost
of $100
per claim,
if all
claims taken
up, or
?200 per
claim, if
only part
taken up.
l?3,000 for
claims and
relevant geophysical
data.
52,000, being one-third
of total
prospecting and
staking costs
of the
venture.
15. St
17.
continued
Area or
No.^ p f
Claims
INING - Continued
B. 2 parcels of
land (157
acres each),
surface and
mineral
rights, (Fensom
property).
Refer
also to
Items 12(3)
and 14(3).
9. 18
unpatented mining
claims. Refer also
to Items
12(4) and
14(3).
10. 104
unpatented
mining claims.
Refer
also to
Items 12(1)
and 14(1).
Location
Lorne Township,
southwest of
Sudbury,
Ontario
Interest
Vendor
Contiguous to
Fensom
property, Lorne
Township, Ontario
Hindon and
Stanhope
Townships, near
Carnarvon, Ontario
Option to
acquire a
Mrs. Mabie Robb,
100^ interest (subject 15
Diorite Street,
to a
J.% net smelter
return royalty to
the vendors)
interest
(subject to
a "i.%
net
smelter return royalty to
the vendors of
the Fensom
property)
Coppercliff, Ontario.
and
Mr. Henry Fensom,
R.R. No.
l, Worthington, Ontario
Staked
Option to
acquire a
10W interest (subject
to a
royalty of
5?6 of
net profits payable to
the vendors as
set out
in Note (a)
hereunder)
Peter Ferderber,
114 Villeneuve Avenue,
Val d'Or,
Quebec
and
Donald McKinnon,
P.O. Box
1170, Timmins,
Ontario
Consideration
$1,000 for
option, $1,000 when
drilling commences or on
September
30, 1972,
whichever first occurs,
54,000 on September 30,
1972, 510,000 on
September 30,
1973, and
59,000 on September 30,
1975 (total
525,000).
Staking and recording costs,
being
51,260 of which staking costs
amounted to
51,170.
512,500 and 25,000 shares
of the
Company for
option good to
June 30,
1972, and an
additional 25,000
shares or 57,500 on
or before
June 30,
1972 (see
also Notes (b)
and (c)
hereunder).
Note
(a): 5%
of net profits, as
defined, to
an aggregate royalty of
51*000,000 in
respect of
which advance royalties are
to be
paid at
the rate of
510,000 per year commencing with the
calendar year 1978
if any of
the mining claims are
still held
by the
Company, all
such advance royalties so
paid to
be credited against the
51*000,000 aggregate royalty.
Note
(b): The
vendors have the
right by notice in
writing delivered prior to
June 15,
1972 to
choose between the
additional shares
or cash,
otherwise the
Company may exercise the
option by payment in
either shares
or cash.
iNote
(c): The
issuance of
any of
the shares
is subject to
the acceptance of
this Statement of
Material Facts for
filing by
the regulatory authorities.
16. State the name of any person or company who is or has been a promoter of the issuer within the preceding two years and, if not disclosed in item 15, the nature and amount of anything of value (including money, property, contracts, options or rights of any kind) received or to be received by each promoter.
There is and has been no promoter of the Company during
the last two years.
18. Give the number, and if more than 5%, the percentage of the shares of the issuer held in escrow or in pool and a brief statement of the terms of the escrow or pooling agreement.
The Guaranty Trust Company of Canada, Toronto, Ontario,
holds in escrow a total of 87,500 shares of the capital stock
of the Company subject to release with the consent of the
Toronto Stock Exchange, the Quebec Securities Commission and
the Board of Directors of the company. This is less than 5^6
of the total issued capital stock of the Company.
19. Give the number of shares of the issuer owned of record and beneficially, directly or indirectly, by each person or company who owns of record, or is known either by the issuer or the selling shareholder to own beneficially, directly or indirectly, more than 507o o f such shares, in each case within ten days from the date hereof. Show separately whether the shares are owned both of record and beneficially, or record only, or beneficially only, and show the respective amount in percentages owned in each manner.
As at January LI, 1972 the following shares were
owned of record or beneficially, directly or indirectly.
Name and AddressOwned of ^ of Owned 'fc of Record Issued Beneficially Issued
Draper Dobie Se Co. Ltd., 365,832 25 Adelaide St. W. , Toronto, Ontario
Wills Bickle S, Co. Ltd.Toronto-Dominion CentreP. O. Box 32,Toronto, Ontario 265,900
Doherty Roadhouse Se MccuaigThe Simpson Tower,Toronto, Ontario 196,525
e.8%
S.0%
The beneficial ownership of these shares is not known
to the signatories hereto.
Position and Officewith the Company
Name presently held .. ^.
116,000
Shares Owned Shares Owned of Record Beneficially
V. N. Harbinson
F. D. Corman
F. W. Pooley
J. B. Sage
M. D. Mccallum
Maxwell Bruce
President St Director
Executive Vice- President s Director
Treasurer s Director
Secretary
Assistant Secretary
Director
25,001
5, 001
1
1
-
1
8,000
Nil
Nil
500
Nil
M. W. Rennick Director Nil
20. Give a brief statement of any material "legal proceedings to which the issuer or any of its subsidiaries is a party or of which any of their property is the subject. Make a similar statement as to any such proceedings known to be contemplated.
An action was commenced in the Supreme Court of Ontario
on February 20, 1969, by Ursa Polaris Developments Corporation
against 20 persons and corporations including the Company. The
claim against the Company is for declarations and an injunction.
The Company is defending the action which has been set down for
trial.
This action arose from the Company's interests in the
Muskox Syndicate which project has since been abandoned by all
parties after analysing the results of the exploration programme.
Since the assets involved no longer exist, it is unlikely the
action will be further pursued by the Plaintiff.
21. Give the aggregate direct remuneration, including amounts for services rendered, paid or payable by the issuer and its subsidiaries during the past year to the insiders of the issuer.
The aggregate direct remuneration paid by the Company
to the directors and senior officers of the Company during the
year ended July 31, 1971, amounted to $l / 935 and for the three
months ended October 31, 1971 amounted to $883.l
In addition, fees of $15,000 were paid to Professional
Management Services for administrative management and head office
facilities, and fees of $3,750 were paid to Chapcoe Investment
Corporation Limited for financial advisory services, during this
period as shown in the schedule hereunder. Both companies are
owned or controlled by Mr. V. N. Harbinson, the President and a
Director of this Company. There are presently seven active mining
and oil exploration companies in the group for which these
services are provided. The total costs, which include the salaries
of the administrative staff, are pro-rated to each of the companies
based on the activities of each company over a two year period, at
which time the monthly charges are adjusted if merited.
Year Ended 3 Months EndedJuly 31, October 31,
Paid To: 1971 1971_____ Total
Directors 6* senior officers(direct remuneration) $ 1,935 $ 883 5 2,818
Professional ManagementServices 12,000 3,000 15,000
Chapcoe Investment CorporationLimited ' 3,000 750 3,750
22. Give brief particulars of all options to purchase (other than such as are granted or proposed to be granted to shareholders as such on a pro rata basis) outstanding or proposed to be given by the issuer and its subsidiaries to any person or company, naming each such person or company and showing separately all such options outstanding or proposed to be given to the insiders of the issuer or its subsidiaries.
There is currently in effect an Incentive Stock Option
Plan established by the Board of Directors in 1968 for the officers,
directors and employees of the Company whereby 300,000 shares of
the Company have been set aside of which options on 113,000 shares
are presenting outstanding as follows:
Name of Optionee
K.
F.
T.
F.
M.
J.
M.
D.
J. Anderson
D. Corman
H. Dancey
W. Pooley
W. Rennick
B. Sage
D. Mccallum
R. Wilson
No. ofShares
5,000 1,000
25,000 5.000
20,000 4,000
5,000 1,000
10,000
10,000
2,500 500
20,000 4,000
ExercisePrice
5 $
$ $
$ $
$ 5
?
$
$ 5
5 5
.76
.76
.76
.76
.76
.76
.76
.76
.75
.75
.76
.76
.76
.76
Date ofExpiry
6/6/78 6/6/78
6/6/78 6/6/78
6/6/78 6/6/78
6/6/78 6/6/78
23/12/79
23/12/79
6/6/78 6/6/78
6/6/78 6/6/68
Date ofGrant
6/6/68 28/5/69
6/6/68 28/5/69
6/6/68 28/5/69
6/6/68 28/5/69
23/12/69
23/12/69
6/6/68 28/5/69
6/6/68 28/5/69
23. State the prices at which shares of the issuer have been issued for cash during the past year. Of any shares have been issued for services, state the nature and value of the services and give the name and address of the person or company who received such shares. State the number of shares issued at each price.
None
24. Give the dates of and parties to and the general nature of every material contract entered into by the issuer or any subsidiary within the preceding two years which is still in effect and is not disclosed in the foregoing.
There are no material contracts entered into within the
preceding two years which are still in effect, and which are not
disclosed in the foregoing.
25. Give particulars of any other material facts relating to the share proposed to be offered and not disclosed pursuant to the foregoing items.
There are no other material facts which are not disclosed
in the foregoing items.
PURCHASERS' STATUTORY RIGHTS OF WITHDRAWAL AND RESCISSION
Sections 64 and 65 of The Securities Act, 1966, Ontario contain certain provisions enabling a purchaser of securities offered in the course of primary distribution to rescind the contract of purchase:
(a) While the purchaser is still the owner of the securities, if the Statement of Material Pacts and any amended Statement of Material Facts, as of the date of receipt by the purchaser, contains an untrue statement of a material fact or omits to state a material fact necessary in order to make any statement contained therein not misleading, but only if action is commenced within 90 days from the last to occur of the receipt of the Statement of Material Facts or amended Statement of Material Facts or the contract of purchase; and
(b) If the person or company from whom the securities were purchased is notified in writing or by telegraph of the purchaser's intent to rescind not later than midnight of the second day, exclusive of Saturdays, Sundays and holidays, after receipt by the purchaser of the Statement of Material Facts or amended Statement of Material Facts. A Statement of Material Facts or amended Statement of Material Facts sent by prepaid mail is deemed conclusively to be received in the ordinary course of mail. The receipt thereof by a person or company acting as agent or who thereafter commences to act as agent of the purchaser shall be receipt by the purchaser as of the date of the agent's receipt thereof; however, for the purpose of the foregoing, a person or company is not considered to be acting as agent of the purchaser unless the person or company is acting solely as an agent of the purchaser and has not received and has no agreement to receive compensation from or on behalf of the vendor with respect to the purchase and sale. This right of rescission is not available to a registrant or to a purchaser who sells or otherwise transfers beneficial ownership of the securities purchased before the expiration of the time within which rescission may be effected.
31E82SW8M1 63.2935 H INDONOSO
CAM MINES LIMITED (No Personal Liability)
FINANCIAL STATEMENTS
THREE MONTHS ENDED OCTOBER 31, 1971 (unaudited)
THREE YEARS ENDED JULY 31, 1971
Thorne,Gunn,Helliwell&C Christenson CHARTERED ACCOUNTANTS
AUDITORS' REPORT
To the Directors of CAM Mines Limited
(No Personal Liability)
We have examined the statements of exploration and administrative
expenditures deferred, deficit and source and application of funds of CAM Mines
Limited (No Personal Liability) for the three years ended July 31, 1971. Our
examination included a general review of the accounting procedures and such tests
of accounting records and other supporting evidence as we considered necessary in
the circumstances.
In our opinion these financial statements present fairly the results of
operations and the source and application of funds of the company for the three
years ended July 31, 1971, in accordance with generally accepted accounting
principles applied on a consistent basis throughout the period.
0 THORNE, GUNN, HELLIWELL 6c CHRISTENSON Toronto, CanadaAugust 26, 1971 Chartered Accountants
Of TICES THROUGHOUT CANADA AND ASSOCIATES THROUGHOUT THE WORLD
ASSETS
CURRENT ASSETS Cash Accounts receivable
INVESTMENT IN OTHER COMPANY, at cost Pan Minerals Inc. shares
MINING CLAIMSMining claims and properties in the Township of
Rouyn, Quebec, acquired in consideration forshares of the company's capital stock
Mining claims in the Township of Coleman, Ontario,acquired for 25,000 shares of capital stock aspresently issued and $16 ) 300 cash
Interest in mining claims in the Bancroft area,Ontario, acquired for cash
Mining claims in Lorne Township, Ontario, acquiredfor cash
Mining claims in the Raleigh Lake area, Ontario,acquired for cash (note 1)
OTHER ASSETS AND DEFERRED EXPENDITURESPayment on option to purchase mining claims in the
Favourable Lake area, Ontario (note 2) Payment on option to purchase 116 claims in the
Savant Lake area, Ontario (note 3) Payments on option to purchase mining claims in the
Bancroft area, Ontario (note 4) Payment on option to purchase mining properties inLorne Township, Ontario, at cost (note 5)
207o Interest in exploration project on 484 claims inSturgeon Lake area, Ontario, at cost
1/6 Participation in claims staking venture, WakehamBay area, Ungava, Quebec, at cost
Participation in a staking joint venture - 33 1/37,,interest
Exploration and administrative expenditures deferred
CAM MINES (No Personal
(Incorporated under t
BALANCE SHEET - OC (unaudi
3,023464 $ 3,487
70,750
28,800
500
1,170
3.000
12,500
11,600
26,000
1,000
26,912
14,727
2,000902.276
8,583
104,220
997.015
Approved by the Board
Director
Dit ec tor
CAM MINES LIMITED (No Personal Liability) rated under the laws of Quebec)
:E SHEET - OCTOBER 31, 1971 (unaudited)
LIABILITIES
3,487
8,583
CURRENT LIABILITIESAccounts payable and accrued liabilities
SHAREHOLDERS' EQUITYCapital stock (notes 6 and 7)Authorized - 5,000,000 shares of $l each Issued - 3,871,453 shares Less discount
Contributed surplusArising from reductions of capital in 1955
and 1963
Deduct deficit
9,155
$3,871,453 2.697.659 1,173,794
1.307.3302,481,1241.376 ..974 1,104,150
104,220
Contingent liability (note 8)
UM MINES LIMITED (No Personal Liability)
STATEMENT OF EXPLORATION AND ADMINISTRATIVE EXPENDITURES DEFERRED
Three monthsended
October 31. 1971 (unaudited)
EXPLORATIONBancroft area, Ontario
Engineering and consulting feesand expenses
Diamond drilling Equipment, supplies and equipment
repairs Prospecting, staking and linecutting
Claim transfer fees Office rental TravelAcreage taxes Mapping and assaying expenses
Other explorationTownship of Rouyn, Quebec Wakeham Bay area, Ungava, Quebec Township of Coleman, Ontario Savant Lake area, Ontario Wollaston Lake area, Saskatchewan -
257. interest Oil and gas interest - South Sousa
Project - 107o interest Favourable Lake area, Ontario Lorne Township, Ontario General exploration
277
150
56
483
123
4161.4812.026
ADMINISTRATIVE AND GENERAL EXPENSES, (note 9)
Less interest earned
Expenditures (net) for the period
Expenditures deferred at beginning of period
Deduct amounts written off Tetu Township, Quebec Wollaston Lake area Project South Sousa Project General exploration expenditures
Expenditures deferred at end of period
2,5096.6859,194 __44
9,150
894.607903.757
1.4811.481
Year ended July 31,1971
$ 2,500
4,285
10,342
1,200 1,227 3,112
28822,954
358 3,333
1,975
2,8718.53731,491 27,37658,867 3,046
55,821
841,657897,478
2,8712,871
S894.607
1970
3 21,062
7,658
15,974
1,200 6,219 1,437
82754,377
684
66
7,522
13,067
5,45726,79681,173 28,177109,350 11,183
98,167
773,007871,174
10,993 13,067 5,457
29,517
S841.657
1969
$ 37,662 29,769
28,482
27,046 2,783 4,500 10,024
6,583146,849
358
66
795
5,120
7467,085
153,934 31,149
185,083 5,069
180,014
601,081781,095
7,342
7468,088
S773.007
CAM MINES LIMITED (No Personal Liability)
STATEMENT OF DEFICIT
Three monthsended
October 31, 1971 (unaudited)
Year ended July 31,1971 1970 1969
Balance at beginning of period Add amounts written off
Bancroft area, OntarioInterest in mining claimsOption payments
Tetu Township, QuebecMining claimsExploration and applicable
administrative expenditures Wollaston Lake area Project
Exploration and applicableadministrative expenditures
Northwest TerritoriesSulphur permits
Unproductive oil and gas leasecosts and developmentexpenditures
General exploration expenditures Cost of issuance of warrants
in 1969 Commission on sale of capital
stock in 1969Investment in other companies Participation in Onslow Syndicate,Australia
Deduct profit on sale of Government of Canada bonds
,375,727
1,481
$1,291,160 $1,253,850 $1,206,995
1,377,208
234
22,6202,871
54,076
5.000
3,500
10,993
13,0675,457
2,785
1,508
10,0005,000
15,000
7,342
8,767
746
1,375,727 1,291,160 1,253,850
Balance at end of period SI.376.974 SI.375.727 SI.291.160
CAM MINES LIMITED (No Personal Liability)
STATEMENT OF SOURCE AND APPLICATION OF FUNDS
Three monthsended
October 31, 1971 (unaudited)
Year ended July 31,
Source of fundsCapital stock issued for cash Proceeds on abandonment of sulphur
permits Proceeds received on demand notereceivable - Muskox Mines Limited
Profit on sale of Government of Canada
bonds
Application of fundsExploration and administrative
expenditures (net) Deduct equipment purchased in prior
years transferred to exploration
Bancroft area
207o Interest in exploration projecton 484 claims in Sturgeon Lakearea, Ontario
1/6 Participation in claims stakingventure Wakeham Bay area, Ungava,Quebec
Payments on options to purchase miningclaims in Bancroft area, Ontario
Payment on option to purchase miningproperties in Lorne Township, Ontario
Mining claims in Lorne Township, Ontario
Oil and gas interests Shares in Pan Mineral Inc. Investment in Muskox Mines Limited
SharesDemand note receivable
Cost of issuance of warrants Commission on sale of capital stock Payment on option to purchase claims in
Savant Lake area, Ontario Advances on two staking programmes Participation in Onslow Syndicate,Australia
Increase (decrease) in working capital position
Working capital at beginning of period
$ 234 234
9,150
9,150
1,0001,170
11,320
(11,086)
5.418
1971 1970 1969
$292,102
98
4,800
4.800
307
8,061
8,000
22,620
10,0002,7851,508
292.200
55,821 $ 98,167 180,014
12.00055,821 98,167 168,014
26,605
6,666
8,000 18,500
3,233
28,816
Working capital (deficiency) at end of period S(5.668)
11,6005,000
5.000 ______ .^ - 93.789 176.351 218.563
(88,989) (176,351) 73,637
94.407 270.758 197.121
.418 S 94.407 5270.758
CAM MINES LIMITED (No Personal Liability)
NOTES TO FINANCIAL STATEMENTS (unaudited)
OCTOBER 31, 1971
1. MINING CLAIMS IN THE RALEIGH LAKE AREA, ONTARIOUnder an agreement dated August l, 1971, the company purchased 16 mining
claims in the Raleigh Lake area, Ontario for consideration of $3,000 in
cash and a royalty of 170 of the net smelter returns of ore. mined from
these claims.
2. OPTION TO PURCHASE MINING CLAIMS - FAVOURABLE LAKE AREA, ONTARIO
The company acquired aa interest in 668 mining claims in Favourable Lake
area of Ontario, in prior years, which included 148 claims held under
option and 520 claims acquired by staking - $12,500.
Under an agreement dated April 29, 1968 the company and Keevil Mining Group
Limited have agreed to explore and develop these mining claims. Pursuant
to this agreement, Keevil has earned a 5170 interest in the claims by the
expenditure of $250,000 in exploration and development including option
payments on these claims and may incorporate a new company on or before
April 29, 1972 to hold the claims. As consideration for the transfer,
shares of the new company are to be issued to the vendors in proportion to
their respective interest in the claims.
In the event Keevil incorporates a new company to hold the claims, theremaining 4970 interest in this new company is, under various agreements
with the parties concerned, to be allocated as follows:
CAM Mines Limited 40.07oManhattan Continental Development Corporation 4.17.Optionor of the 148 claims held under option 4.970
49.07.
It is the intention of Keevil and the company to bring 63 of the claims
covered in their agreement to patent, while the remainder have lapsed or
will be allowed to lapse.
Subsequent to the date of the balance sheet, the company and Keevil Mining
Group Limited, by an amending letter agreement dated December 22, 1971, have:
(a) extended the date by which Keevil must incorporate a new company
to April 29, 1975
(b) created a partnership between themselves in the exploring and developing of these mining claims.
3. OPTION TO PURCHASE MINING CLAIMS - SAVANT LAKE AREA, ONTARIO
Under an agreement dated May 6, 1971, the company acquired an option to
purchase 116 unpatented mining claims in Boucher and Conant Townships and
Evans Lake area, Sioux Lookout Mining Division, Ontario for $11,600.
In order to exercise the option further cash payments are required on or
before October 31, 1972 in the amount of $100 for each claim if the option
is exercised on all the claims covered in the agreement or $200 for each
claim acquired when option is exercised only on part of the claims.
In addition, the company has agreed, if the option is exercised in full or
in part, to pay a royalty of 170 of the net smelter returns of ore mined or extracted from the claims acquired by the company.
CAM MINES LIMITED (No Personal Liability)
NOTES TO FINANCIAL STATEMENTS (Continued) (unaudited)
OCTOBER 31, 1971
4. OPTION TO PURCHASE MINING CLAIMS - BANCROFT LAKE AREA, ONTARIOCertain mining rights in the Township of Cardiff in the County of Haliburton and in the Township of Faraday in County of Hastings - $26,000.
To fully exercise the option, further cash payments of ?8 ,000 on or before March l, 1972, 1973 and 1974 are required to arrive at an aggregate consideration of $50,000. In addition, the company has agreed to pay a royalty of 25^f per ton on all radioactive material mined and milled under the said claims, or in the alternative, at the optionor's election the claims may be transferred to a company to be incorporated whereby the optionor may receive one-third of the shares to be issued for the claims up to a maximum of 250,000 shares of the new company.
5. OPTION TO PURCHASE MINING CLAIMS - LORNE TOWNSHIP, ONTARIOUnder a letter agreement dated September 30, 1971, the company acquiredan option to purchase two parcels of land including surface rights inLorne Township, Ontario for $25,000, of which $1,000 was paid on signing.In order to exercise the option further cash payments are required as follows:
$1,000 upon commencement of drilling on the property or one year from the date of the agreement, whichever occurs first,
$4,000 one year from the date of the agreement,
$10,000 two years from the date of the agreement and
$9,000 four years from the date of the agreement.
In addition, the company has agreed, if the option is exercised in full, to pay a royalty of 1 7, o f the net smelter returns of ore mined or extracted from all the claims held by the company in Lorne Township, Ontario.
6. SUBSEQUENT EVENTS(a) Capital stock offering .
By an agreement dated November 15, 1971 the company has agreed to offer for sale up to 500,000 shares of its capital stock to provide net proceeds to the company of at least $125,000. The issue price and effective date are to be determined as follows:
(i) The issue price is to be determined by applying a discount to the closing market price on the day prior to the effective date. The discount is to be the maximum allowed in accordance with the regulations of The Toronto Stock Exchange and may range from 257o to 1070 depending upon the closing market price.
(ii) The effective date is to be the date on which a fixed priceoffering of the shares commences on The Toronto Stock Exchange, which date is to be not less than 5 business days and not more than 21 business days after mailing by the company of a Statement of Material Facts has been accepted by The Toronto Stock Exchange and the Ontario Securities Commission.
CAM MINES LIMITED (No Personal Liability)
NOTES TO FINANCIAL STATEMENTS (Continued) (unaudited)
OCTOBER 31, 1971
6. SUBSEQUENT EVENTS (Cont'd)(a) Capital stock offering (Cont'd)
The offering may be withdrawn by the company or its agent at any time prior to 9.00 a.m. on the day of the offering should any market con dition exist, any event occur or any situation develop which, in the
opinion of either, would make it inexpedient or inadvisable to make the offering.
(b) Option to purchase mining claimsUnder an agreement dated November 6, 1971, the company acquired an option to purchase 104 mining claims in the Townships of Stanhope and Hindon, Ontario for $12,500 cash and 25,000 shares of its capital stock,
In order to exercise this option, the company must make a cash payment of $7,500 or issue 25,000 shares of its capital stock to the optionors on or before June 30, 1972.
In addition, if the company holds any or all of the claims on December 31, 1977 the optionors are entitled to receive a royalty of 57o of the net profits, as defined, from any operations on the claims up to a maximum of $1,000,000. Advance royalties are to be paid at the rate of $10,000 per year commencing in the calendar year 1978.
The company is presently negotiating an agreement with Imperial Oil Limited to conduct an exploration programme on these claims for a 507o interest therein.
7. INCENTIVE STOCK OPTION PLANUnder the terms of the Incentive Stock Option Plan approved by the Board of
Directors in 1968, 250,000 shares were set aside for purchase by key employees and directors. In view of the rights offering in 1969, the Board of Directors approved an increase in the number of shares to be set aside
by 207o of the original terms of the Plan. At October 31, 1971, options have been granted on a portion of the 300,000 shares set aside, as outlined above,
as follows:
No. of shares Exercisable at On or before
93 .000 7 6tj. per share June 6 , 1978
20.000 75^ per share December 23, 1979
113 .000 shares
8. CONTINGENT LIABILITYAn action was commenced in the Supreme Court of Ontario on February 20, 1969
by Ursa Polaris Developments Corporation against 20 persons and corporations including the company. The claim against the company is for declarations
and injunction. The company is defending the action which has been set down for trial. Since the assets involved no longer exist, it is unlikely
the action will be further pursued by the plaintiff.
CAM MINES LIMITED (No Personal Liability)
NOTES TO FINANCIAL STATEMENTS (Continued) (unaudited)
OCTOBER 31, 1971
ADMINISTRATIVE AND GENERAL EXPENSES
Three monthsended Year ended July 31,
October 31. 1971 1971 1970 1969 (unaudited)
Office services 33,000 312,000 312,000 312,000
Printing, stationery, telephoneand telegraph 75 94 392 1,088
Travelling 13 629 503 405
Legal, audit and other fees 1,168 7,693 8,378 7,950
Directors' fees 50
Transfer and registrar expense 879 4,340 3,039 5,839
Stock exchange fees 200 100 500
Shareholders' information andpublicity 1,141 1,977 2,539 2,456
General expenses 409 443 1,226 861
327.376
DATED at Toronto this 13th day of January , 1972.
The foregoing constitutes full, true and plain disclosure
of all material facts relating to the securities offered by this
Statement of Material Facts.
CAM MINES LIMITED
"V. N. Harbinson"
President and Chief Executive Officer
"Dale Corman"
Executive Vice-president and Chief Financial Officer
On behalf of the Board of Directors
"Maxwell Bruce"
Director
"M. W. Rennick"
Director
To the best of our knowledge, information and belief,
the foregoing constitutes full, true and plain disclosure of all
material facts relating to the securities offered by this Statement
of Material Facts.
Hector M. Chisholm St Co. Limited
Per: .. G . w^ chisholm"
President
i. u vein be r 25. 1971.
ioronto, cV
jjear oirii:
j hereby cuiu-ent to the filing with
...I my rerorl a." L'jd Kov";,;bor 25, 197"!. prepared i o r Gara ,.ines
i ii;--ited, Ji, i.ti; cl-:i L,n ^i-ijups located in .innon a;ul Stanhope
, x i s t.i.-1 ^..i-jt'..-! 1 !, untario i-.iii
~i vi;L truly ,
3iE92Swwei 63.2935 H INDON 030
L i ^.'Li.', J
Oii
Ai.D
uiVIAKiU ni
O W TAR 10
W. BAZU'^T, P. Ei.G.
AT
J. il t. -Li..J , C l.'i'/ii'ii
.^'/^. ijjjx-L ^, J . V
31E92SWTOBI B3.293S HINDON 03OC
1. ouiiuuarv ai:u
2, .Li l ll\, 1^. ILC tl^;.
; rvi - i (-'r- l" : rj , l i O ..it, L ^•t
o. Geology
7. 1'iineral Deposits
ins icndatiotis
J 0. iieferejiceu
il. List ui1 -L!!U
13. Certificate
Oii
i.jj^i, -ii.jj J 1'Ai.Lii^l L^ I'L WnoH il/o
l i..Aii L'l. i A.i j. L i.: l.)', j-ntj iJ i a.cj j.Oi
COi.CLU'SJLUiJS
Gain lniries Limited holds a group of 104 unpatented claims
located in ..indon and Stanhope townships, approximately twelve
miles weot of the village of Carnarvon in the Eastern Ontario Lin
ing Uivisioii. Lov/ tirade disseminated copper mineralization lias
recently been discovered on the property in a rock-cut along a new
road be inf. constructed between Carnarvon and Washago. The mineral
ization occurs in diorite intrusives.
iwo old showings of disseminated copper mineralization
in similar dioritic rocks, occur on the property approximately
A-.OOU feet south of the rock-cut showing. Ihese showings were ex
plored by Dupel 1'jinea Limited between 195^ and 1950 and by White-
gate IN in ing Company Limited in l^oo and lyo?. The exploration
work on Lnuse old showing.s included trcrichiiig, drilling and conven
tional isophysical surveys but tiie ( ,eo ; )[^, :;ical work did not include
induced polarization mfcthous wrJc;. ^rc.- \vull suited to detecting
concentrations uf disseminated f.;ulrjlu.dc niiuoralization of the type
occurring on the troper l./. j.n . ';neral tin; results of the old work
were disaupointinc-.
AS a result ui' t;, e recent ruei.-uu., discovery, these
showings no longer a. :)oar Lo be isoi;i Li;U occurrences. They all
have similar mineralogy, occur in dioriLie rocks* and appear to
have approximately tae jaine strike. in the writer's opinion the .
area between the v.. 1 '. :.-,i owin/-'?; and t h o new rock-cut Bhowing i s an
obvious exploration target ami warranty detailed exploration. The
distance between tiir oiu snowings and the rock-cut showing is in
excess oi *4-,000 feet. in addition to exploration in this area the
possibility of finding similar mineralized dioritic intrusives
elsewhere on the property should also be followed up.
A preliminary exploration program consisting of pros
pecting, geological mapping, magnetic and induced polarization
surveys is recommended on the property to explore for large ton
nage disseminated copper orebodies.
.usTRlJJUCT.u i-
This report was prepared at the request of the Directors
of Cam Mines Limited. its purpose is to outline an exploration
program to assess a property on which a discovery of disseminated
copper has recently been made. The property is in Hindon and
Stanhope Townships, Eastern ontario.
The discovery was made by *j. j'.chinon. while prospecting
a rocU-cut alonfj a new road beinr constructed between Carnarvon
and Washago. ~ome of tne copper nmeralization original exposed
in the east end of the rock-cut ha:., oubuerut-ntly been partially
covered over by road-fill but :;; i.^eral j.z.a L .ion it still exposed
along the western portion o r LKC cut. ^i-veral tons of large well
mineralized boulders, bulldozed to t/iu ::iuo o: the roadway, are
at present the only evidence jf v,-hat a^.-j-ears to be a well mineral
ized section at the east onu of the rod.-'-ut.
The report uoiAainu recommendations for a work program
designed to explore i'or large tonnage low ^rrade copper deposits./
The write:- visited the property on November 18 and 19,
l//l. The i.iineraijL/.cu ureas v/ere examined and selected grab sam
ples were taken. Hie author subsequently utudied all of.the data
relating to the iro^erty available at the untario Department of
i.dries.
PROPERTY ' /*- ——————— S/
The property consists of 104 contiguous unpaterited min
ing claims totalling approximately 4,900 acres. The claims are
more precisely described as follows i
CLAo... NO. OF CLAli.-io JfA'lU
313"21330 0 L,'
33S97V319800
fino-y /-C 3-LjJ5o96/1^^0^313613
33280331807333Q00232890233897133900s*332.y51
3309/53180^)8
tolotototototototototototototow '
313^34-1 -nclusive)333^23^3330U2 ' ,319894••313570 ———— " —————313620332874^31808! J339003 y328909338974 f')3vOl2 j"n^v;2/3)394 ,' y338970 '
1484o2 '8
1292847
12221
UnpatentednH11"""""•tDDDii -rt
M
VAL
The title-j of Li:o.Qc ci aii:i,j v/eru not ascertained but it
is understood that (Jam :.inuu i^in.itod la.; o{.:tioned the property,
although no le^al docuiiiciit to this effect has been examined by the
writer.
AC i! i^ -i J
The prop e r Ly :; or addle s the township line between Hindon
and Stanhope towns! i;uj in the Eastern unlario fining Division. The
uajor portion o i' ti.c claims am situated in the southeast quarter
uf .lindon Township.
ihe pro 't-rly i L; approximately twelve miles west of the
village of Carnarvon on highway ^o. 35 and is accessible by a
gravel road. Construction is still in progress on a new highway
traversing the property. Jfe-
According to the records available through the Ontario
Jepartinent of uiues, two copper showings located approximately
4,000 feet south of the new rock-cut showing were explored for
copper by uupel ...ines Limited between 195^ aud 195^- Work con
sisted of trenching, geological mapping, geophysical surveys and
at least 15 diamond drill holes totalling 5i^7 feet. Juring 19o6
and I9o? surface exploration was carried out on these same old
showings by Whitegate i.lining Company Limited. To the writer's
knowledge, work performed by former operators did not include an
induced polarization survey. xt is genorally accepted that this
type ui' survey ij the most succe^fu.l geopli^f.-ical technique for
locating disseiiiin.j toil ;;uluhide orubuaio; .
•on Lho jriocit ive:;terly ^i.owin,,, erraLic but good grade
cooper valuer vvcix- tracou oy ^uriacc Irenching for a leii^th of
'^,jOQ f ei; L. A h e averat^-1 widtl. wao l 1/. 5 -t'-ut. i'lie results of a
subsequent diajnund dril i .,ro.;;rajn v.'eru ; tot a:: encouraging as the
surface results. i h e be;, t uianond urili iio^e intersection averaged
CAM MINES LIMITED
LOCATION PLAN
CAM MINES LIMITED
Hindon a Stanhope Townships
EASTERN ONTARIO MINING DIV.
Scote l * 16 mi.
FROM* ODM Mop 2197 1971
ftood
(Sompl*
908)
mm
iroiiz
td
3:o
n'*
Rock
wrfo
u
bottom
of rock - cutV
- ''ooo fill
LEG
EN
D
Rood
RI)
Outline
of p resent rock
surface under
road
SK
ETC
H
OF S
EC
TION
TH
RO
UG
H
RO
CK -C
UT
CAM
M
INES
Hindon S
Stanhope Tow
nships
EA
STE
RN
O
NTA
RIO
M
ININ
G
DIV
.
LOO
KIN
G N
OR
TH
Scale: l" * 100'
1971
l. Z '/* copper over a core Ion, . Lh oi' 17. i) 1'eet.
i.uch less work was done on the east showing since surface
indications were not as encouraging. Work here consisted of three
trenches and one u-amona drill hole. There is no record of. the
results'of the drilling. jjjjjil -
GENERAL Gbc LOGY
The most detailed geological map available for the area
is u.D.ivi. map No. 52a (Haliburton Area) 19^3 1 at a scale of two
miles to the inch. This mappiog is not sufficiently detailed to,:'- ; ^J. ;:
show the pertinent geological ^Natures and shows the area to be
underlain by granite, granite gneiss, pegmatite and hybrid gneisses
o! sedimentary origin.
a' he strike varies from N10OE to !OOoJi and the dip from
350 to 700 to the east. In the vicinity of the showings these
rocks are cut by diorite-amphibolite dikes which closely conform
to attitude of the country rock. All of these rocks are in turn
cut by pegmatite dikes varying in width from a few inches to sever
al feet. The diorite-amphibolite dikes host all of the known cop
per showings on the property.
.IJ.LI.
i' h e diorite-amphibolite uil.f-js arc; mineralized at irre
gular intervals. Generally fjucai:!;.,:, the copper mineralization
occurs as i.-atcheu of diGcr.v.iiiatea ci'.alcopyrite and minor bornite.
Pyrite, pyrrhotite, a^.a ..lu^netito arc accessory minerals. Locally
hairline strin^cru oi' ,a^:jivc ci.alooj - yn. le occur. Copper mineralc-
iaation also occurs as ^ij.Lr; in pegmatite dikes and as enriched
patches in the diorite Ln cluse proximity to the pegmatite. This
feature is possibly due to remobiiizatioii of the copper minerals
by the intruding/; r enalite dikes. i^.:*-';-:f- ; '
'Die old '.jjiov/in^tj are described under the sfcotion ~of this
rojiort dealing with tho "j.ioLory" o.f the property. The new rock-
cut showily; is irregularly Mineralized with copper over a width
of approximately 250 feet. On the average, however* the grade of
mineralization is much below or* grade. The best mineralized sec
tions occur in the hanging tifjjjfcL of the dike at the east end of the
road cut. in this area several patches varying from two feet to
eight feet in widtli are estimated to average approximately l!/^
copper bancd on the saaples taken by the writer. Continuity of
mineralization along strike or at depth has not been established
since no exploration work has been done in the area of the rock-
cut showing.
Two samples of the better grade mineralization were sel
ected. These are not representative of the average grade of the
mineralization. Results of the sampling are listed below.
i i
l .62 oa.in ie of boulders attML-; t end of rock-cut.
1.56 ^elected grab u ampleo ' i'igher grade miner alization in rock-cut.
j. t is therefore recommended that the intervening area
between the old iA; t --'l showing and the new rock-cut showing be
prospected and mapped geologically. Since magnetite appear-s to
be associated with the copper mineralization in the roadr-cut
showing it is recommended that a magnetometer survey be carried
out over the entire property on fairly closely spaced picket
lines. t
in the writer's opinion the disseminated type of min
eralization present in the known showings would not be detected
by standard electromagnetic geophysical techniques. However,
induced polarization methods should successfully locate any size
able concentration of this type of mineralization, it is there
fore recommended that an induced polarization survey be carried
out over the area between the old Dupel i'-dnes showings and the
rock-cut showing.
The cost of completing this work is estimated as follows:
Line cutting
Magnetometer Survey (131 miles o' |35. /mile) ————————————
Geological i.app.u*g - — -- — ------- —— ——
induced lolarizatiun ^urvey
.-' ' ^ - /'.''' ' ,'. ' - ." ' -. !j.'wTAL
/ '•'" f '.,r V;, - . '-
—— 11,100.00
— 1,500.001,500.00
7,500.00
^3^,700.00
Timmins, ^ntario. hovember 25, 1971.
Submitted,j" * . f
t - , ^ ,,-,
^y
l'. O. D. j-., l y f/,-'i .i i. C. 2, i . :
'2. v,.jj.].u, I'j/oy1 , ...K.C. 12, l'.
'4. u.iJ.i'i. , *..ap 21 i,'7
5. o.D.M., I*iap 52a
6. u.D.ivi., Toronto, Res. . Files (Dupel Mines Limited)
LJ J'i' o i? ILLUSTRATE ....
1. Location i lau
2. i roper ly i lau
3. Jectiou Through Kocl.-out Showing
l 'r. Locatioft Plan ui .-.ineralized ohowingo
- 1U -
APPENDIX
p. a. BOX sso
Val d'Or. Que.,
TIL B24-4337 - B 24-3872
November 23 | 9 71
BOURLAMAQUE ASSAY OFFICEREG'D.
J. C. JENSEN,
HI MBt aCANAO'*** T1 S T (Urrttftcaic of Analysis
V- "9
No. .24115
Idrntlflcnllon:Roi'clM'd {roni: Hrgu dv:
Cu
L. W.
Minea Limited
Samples of: Krlianlillims (li". burfac*
Nov. 23with Ihc following ri-sulls:
avoc los rosulluls sulv;mts
s* f-
1906
1909
1.68
1.66
Vy
\tsayer.
- 11 -
C h rt T i. F l CAT i
.L, the undersi^i "-'d, L., v/. Bazinct of the Town of timmins, in the Jistrict of Cochrane, and Province of Ontario, hereby certify:
1. That i ai.; a . ..Liu.i:~ L.n^iueer ;ind reside atijeau Jtvciiue, Tirnminij, untario.
2. That i graduated from the University of Toronto in Iy55 with a Bachelor of Science degree, and that i. have been practising my profession continuously since that time*
3. That i am a member in good standing of theAssociation of Professional Engineers of the Province of Ontario.
4. That ^ do not have nor do I expect to receive directly or indirectly an interest in the pro perties or securities of Cam l/iines Limited.
5. That the accompanying report on the Cain kines Limited property in Hindon arid Stanhope Twp. dated i.ovenbur 25* 1971 is based on my per- conal examination of the property, and an examination of available U.D.i.,. records and other available reports and maps.
Respectfully Submitted,
c /' ( S ''{ * ' " i'
±. 'it. i-azinet, i . iing.
novetnber 25, l (s','l.
'^
