Australian firm plans share stake in Canadian United

An Australian company, Balmoral Resources, will be taking a share position in Vancouver-based Canadian United Minerals, which ultimately could lead to full control. The agreement, which calls for Balmoral to purchase one million shares at $2 each, also includes an A warrant for another one million shares at $2.50.

Canadian United confirms that Balmoral will end up with a 40% interest on a fully diluted basis. Balmoral was listed on the Australian Stock Exchange in 1980 and it will be forming a subsidiary here to hold its Canadian assets.

Balmoral has oil and gas holdings in the United States, an interest in a platinum-gold company in Australia, producing placer (gold) properties in Queensland, and prospects elsewhere in Australia. The company’s chief executive officer is Richard Tinsley who was previously executive director of ebc Amro Bank in London.

Michael Callahan, secretary for Canadian United, feels Mr Tinsley’s overseas banking contacts will be beneficial when Canadian United has to fund its participation in the Dome Mountain project near Smithers, B.C. Development work is expected to get under way next year. Balmoral is also rumored to be considering other acquisitions in Canada including the purchase of Canada Tungsten’s stake in Queenstake Resources which has been on the market for some time now.