TORONTO, ONTARIO--(Marketwire) - Nuinsco Resources Limited ("Nuinsco") (TSX:NWI) (www.nuinsco.ca), announces that it has provided Campbell Resources Inc. ("Campbell") (TSX:CCH) with a secured revolving credit facility to a maximum aggregate amount of $1,500,000. Nuinsco has also agreed to purchase and subscribe for 6,000,000 common shares of Campbell, at a price of $0.10 per share, for gross proceeds of $600,000 (the "Campbell Financing"). The proceeds of the credit facility and the Campbell Financing will be used by Campbell to fund further development of Campbell's operations in Chibougamau,Quebec, and for working capital purposes.
Prior to closing the Campbell Financing, Nuinsco owns 42,250,000 common shares of Campbell, representing 9.77% of the outstanding common shares of Campbell. Nuinsco also currently holds a total of 63,807,429 warrants to purchase common shares of Campbell at $0.10 per share, expiring on January 18, 2009, warrants entitling it to purchase 15,625,000 common shares at $0.15 per share, and a convertible debenture (the "Debenture") in the principal amount of $2,000,000. The Debenture is convertible into units of Campbell (the "Units") at a price of $0.13 per Unit. Each Unit is exercisable into one common share of Campbell for no additional consideration, and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Unit Warrant"). Each Unit Warrant entitles the holder to purchase one common share of Campbell at a price of $0.16 per common share until July 20, 2009. The maximum number of common shares of Campbell issuable to Nuinsco on conversion of the Debenture and exercise of its Unit Warrants is 23,076,922 common shares. If Nuinsco were to exercise all of its convertible securities in Campbell, including full conversion of the Debenture into Units and exercise of all of the underlying Unit Warrants, Nuinsco would hold approximately 144,759,351 common shares of Campbell, representing approximately 27.05% of the outstanding common shares of Campbell, calculated on a partially diluted basis assuming the exercise of all of the convertible securities held by Nuinsco only (but not the exercise of any other securities convertible into common shares of Campbell held by any other holder).
After giving effect to the Campbell Financing, which is expected to close on or about February 15, 2008, Nuinsco will own 48,250,000 common shares of Campbell, representing approximately 11.0% of the outstanding common shares of Campbell, and convertible securities entitling it to purchase an additional 102,509,351 common shares of Campbell. If, following the closing of the Campbell Financing, Nuinsco were to fully convert the Debenture into Units and exercise all of the outstanding common share purchase warrants of Campbell then held by it (including the Unit Warrants), Nuinsco would own an aggregate of 150,759,351 common shares of Campbell, representing approximately 27.86% of the outstanding common shares of Campbell, calculated on a partially diluted basis assuming the exercise of all of the convertible securities held by Nuinsco only (but not the exercise of any other securities convertible into common shares of Campbell held by any other holder).
The Campbell securities held by Nuinsco were acquired for investment purposes. Nuinsco may from time to time acquire additional securities of Campbell, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position.
In addition to its equity interest in Campbell, Nuinsco owns a 50% carried interest in the high-grade Corner Bay copper project near Campbell's Copper Rand mine and mill in Chibougamau, Quebec. Corner Bay is currently being developed by Campbell.
About Nuinsco Resources
Nuinsco is a growth-oriented, multi-commodity mineral exploration and development company that is focuse