The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1915-09-02
BLACK BEAR COMPANY
IN CONTROL OF REX
TERMS UPON WHICH PROPERTY
WILL BE TRANSFERRED
DEAL LOOKS GOOD.

Additional particulars of the deal by
which the Rex Consolidated Mining
company will take over the Black Bear
consolidated company are contained
in letter which has been mailed tc
the stockholders of the latter company
by President Peter Bernier, who is
now on the way home from New York
where he closed the deal. Mr.. Berniel
went east about month ago. and
having failed to do business with the
parties he went to see, he opened ne
gotiations with the people who have
recently taken over the Rex, with the
result that he has entered into what
appears to be very favorable agree
ment for all parties concerned. In
his letter to the stockholders he states
that there Is now on deposit In the
First National bank of this city $10,-
600 to be turned over to the treasury
of the company upon delivery to the
bank of options on half of the out
standing stock.
Terms of the Deal.
In his letter Mr.. Bernier states that
the deal he has closed with the Rex
Consolidated company will mean over
100000 net to our treasury in month
ly payments; $4,000 cash is now de-
posted; $4,000 to be paid monthly for
four months; $4,000 in monthly pay
ments for the next four months; then
$18,500 to be paid the ninth month,
and $4,000 the next and last payment,
10 months in all from the time the
options are secured on stock necessary
to comply with the terms of the con-
tract. This means total of $112,500
for our treasury.
I'm order to consummate this deal 1t
will be necessary for all Black Bear
stockholders to give an option on 500-
600 shares of personal stock. This
means that you must give an option on
at least one half of all your individual
stock even though you have only 20
shares.
"The price and terms of this option
are as follows: The price is 27 cents
per share and the option runs until
January 2, 1917. The terms are: s
per cent to be paid on or before March
l, 1915; Is per cent on or before Sep
tember /, 1916, and the remainder, or
80 per cent on or before January g.
1917.
Protect Stockholders.
"The agreement also stipulates that
the purchasers can not take up this
option stock until all treasury stock
has been paid for and it also provides
that any dividends which may be de-
clared by the directors of our COM
pany during this option are to be de-
posted in the First National bank of
Wallace to be paid to you provided
the option is not exercised. Any pay
ment made on such option stock will
also be paid to Black Bear stockhold-
ers according to the amount of stock
depositd by them under this option.
You will receive this money as it is
paid by the purchaser.
"The contract also provides that
our ore will be milled as soon as it is
opened up enough to supply tonnage
panys mill until such time as we build
our own plant.
"As / have been made a director of
the Rex Consolidated Mining company
since arriving in New York, you can
depend upon it that your interests
will be properly looked after by me-"
Well Developed Property.
1t will require but very little work
to place the Black Bear in condition
to produce. A large amount Of ore is
now practically blocked out There is
q depth Of HOO feet on the ore shoot
and 1t has been proved in the main
tunnel for practically the same dis
tance, from which raises have been
made showing much ore, both lead and
zinc, which Is easily available. The
mouth of the main tunnel is within a
few hundred feet of the railroad track.
Under these circumstances with the
terms of the option complied with, no
time will be lost in preparing the mine
for production AS the Rex mill is
rented under a month to month
agreement to the Tamarack- Custer
company, there will also probably be
no delay in having 1t restored to the
Rex company.