Corona acquiring one-third interest in Prime Capital

An agreement has been worked out between Toronto-based International Corona Resources and Prime Capital Corp. of Vancouver whereby Corona will acquire an approximate one-third interest in the latter.

To obtain the approximate 33 1/3% voting and equity interest, Corona has agreed to sell to Prime Capital five million common shares of Royex Gold Mining and 133,333 subordinate voting and 67,667 common shares of Galveston Resources.

The Royex shares changing hands represent about 6.7% of the outstanding common shares of Royex; the sale will reduce Corona’s position in Royex to about 34.1%. (Royex has a 49% interest in Corona.) The sale will close by Jan 15.

Prime Capital was set up recently to play the role of a mining finance house, by acting as a merchant banker to companies in the resource business and providing management services to those companies.

One of Prime Capital’s main movers is stock promoter Murray Pezim who, in announcing formation of the new corporation, said about $250 million was to be raised to get the banking operation on its feet.