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by Stockwatch Business Reporter
The TSX Venture Exchange closed up 8.36 points to 741.73 Monday. David Rosenkrantz's second capital pool shell,
Pinehurst Capital II Inc. (PINH: halted),
plans to acquire 1252201 B.C. Ltd. for the shell's qualifying transaction. The terms are not yet available, but the shell
will roll back 1 for 2, leaving it with 2.5 million shares issued.
1252201 B.C. is in the process of acquiring the Ana Paula gold project in Guerrero, Mexico, from Argonaut Gold Inc. (AR: $2.96). The property includes a 6,000-tonne-per-day mill. 1252201 B.C. must pay $30-million (U.S.) and issue shares to Argonaut such that Argonaut will hold 9.9 per cent of the resulting issuer's shares on closing of the QT. Later, when the resulting issuer begins mine construction at Ana Paula, it must pay Argonaut $10-million.
On closing of the QT, the chief executive officer of the resulting issuer will be Bruce Bragagnolo, 62, of Vancouver. From 1984 to 2007, he practised securities law. Then in 2007, he became a co-founder and the CEO of Timmins Gold Corp. This company brought the San Francisco gold mine in Mexico to production in 2010. Two years later, the stock traded up to $3.48. Mr. Bragagnolo in 2014 received a $471,000 salary and a $393,000 bonus. Timmins Gold also had a president, Arturo Bonillas, a Mexican industrial engineer, who received a $470,000 salary and a $404,000 bonus in the same year. Unfortunately for Timmins, the price of gold hit a six-year low the following year, and the company incurred a loss. Nevertheless, Mr. Bragagnolo arranged for Timmins to acquire Ana Paula in 2015, before he was dismissed from the company in October. In the words of Timmins Gold, he "ceased to be" the CEO. The reason was not explained, but it appeared to have something to do with the company's financial position. In the same news release in which the company mentioned Mr. Bragagnolo's departure, it said that it expected a "significant impairment charge." The company later recorded a $228-million (U.S.) charge in connection with San Francisco. President Bonillas was able to keep his job. He got a raise to $523,000 (with a $500,000 bonus) in 2016.
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