Entry into a Material Definitive Agreement, Unregistered Sale of Equity Secu
Item 1.01. Entry Into Material Definitive Agreements.
Calais Resources, Inc. (the "Company") has entered into two agreements which relate to the settlement of a total of four convertible debentures in the aggregate principal amount of $4,313,377. The two settlement agreements provide for the payment by the Company of a total of CDN$ 260,059 in cash and the issuance of a total of 9,550,368 restricted shares of the Company's common stock.
More specifically, on December 15, 2010 the Company entered into a Settlement Agreement with Lynne Martin regarding a debenture payable to her in the principal amount of CDN$1,103,214. Ms. Martin is the spouse of Melvin Martin who was formerly a director of the Company and who resigned on July 28, 2005. The Company and Ms. Martin agreed that Ms. Martin would accept as full payment for the debenture the amount of CDN$ 110,322 in cash which is to be paid by the Company with four quarterly payments of CDN$ 27,580.50 with the first payment due on December 15, 2010 and the three remaining payments due on March 15, 2011, June 15, 2011, and September 15, 2011. The Company made the first payment on December 15, 2010.
On December 15, 2010, the Company entered into a Settlement Agreement with Marlowe and Judy Harvey and Argus Resources, Inc. regarding the following three debentures:
Marlowe and Judy are husband and wife and Marlowe Harvey was formerly the President and a director of the Company who resigned as the President in 2000 and as a director in November 2003. After the closing of this transaction, he is now a more than 5% percent shareholder of the Company by virtue of the shares owned by his wife and Argus Resources, Inc. Marlowe Harvey is also the President of Argus Resources, Inc. The Company and Judy Harvey agreed that Ms. Harvey would accept as full payment for her two debentures the total amount of CDN$ 149,737 in cash and a total of 8,890,638 restricted shares of the Company's common stock. The cash was paid on December 15, 2010 and the shares were issued on December 20, 2010 to an escrow agent to hold the shares until the Cease Trade Order in British Columbia has been revoked.
The Company and Argus Resources agreed that Argus Resources would accept as full payment for its debenture 659,730 restricted shares of the Company's common stock. The shares were issued on December 20, 2010.
Claims can always be considered a good thing...just depends on if your glass is half full or not...and lately it sounds like yours is half empty...but I think I can understand where you're coming from...
Don't bother with the details. The loss to Brigus is coming and it will be interesting to see how they try to collect and from whom. The old M.T. partner may still be on the hook. Interesting that this has been kept so quiet. Only $9 million involved.
Can Dawe spin this? Details. De tails people tell.
We know wicked can make this seem like a positive.