Yellowhead Mining Inc. recently announced that its shareholders had approved the full automatic conversion of a $8 million convertible debenture previously issued to Matco Investments Ltd., a private investment firm based in Calgary, into common shares of the company.
The debenture has now been fully converted into an aggregate of 35,555,556 common shares of the Company at a conversion price of $0.225 per share, representing approximately 35.91 per cent of the total issued and outstanding common shares of the company.
Frank D. Wheatley, Yellowhead's CEO, commented, "Yellowhead is extremely pleased that the shareholders have approved the issuance of common shares to Matco, as this will allow Yellowhead to proceed with the environmental assessment process for the Harper Creek project"
“Work on the environmental assessment process will recommence immediately,” Wheatley said, “with a target of resubmitting the environmental assessment application to the British Columbia Environmental Assessment Office by the end of the third quarter of 2014.
Yellowhead had announced last November that it was borrowing $8 million from Matco.
A special meeting of shareholders held Dec. 30 approved converting the loan into shares.
Matco was at one time the owner of the former Weyerhaeuser sawmill property in Vavenby.Yellowhead bought the 80 ha property from Matco for a reported $2.15 million in November of 2011.
Yellowhead’s proposed Harper Creek copper-gold-silver mine would be located about 10 km southwest of Vavenby.