The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1919-12-11
CONTROL OF BLACK BEAR
IS TAKEN UNDER OPTION.
STOCKHOLDERS ASKED TO GIVE
PERSONAL APPROVAL OF
THE DEAL.

Copies of the option agreement on
tered into between Peter Bernior
president of the BLACK Bear Nina
company, and John A. Shelton 90
Butte, reference to which was mado -
the last issue of the Miner, have since
been mailed to stockholders of tbo
company for confirmation. Accom-
anying the agreement is the followino
letter to the stockholders from prosi
dent Bernier under date of Dacono
Der 4:
Best Deal Ever.
ITO the stockholders Black Bear
Mines company. Friends:
You will please find enclosed q
copy of an agreement for option inst
given by your board of directors an
100000 shares Of the treasury stock Of
our company, the terms and price he-
ing clearly set forth in a manner read
liz comprehended by those of you who
vf:ll give said 0 % a careful perusaI
This, l, and all the directors, feel the
very best deal ever agreed upon since
that of the Rex deal.
In order to give the party of the
second part control, which had to be
done to close the deal, i have optioned
t. him $4,000 shares of my own stock at
1S cents per share, and any of Won
/ xthA NJ VI pya 30 ~ar+.a4z
plying said 10000 shares may do so by
informing me within 10 days.
Furthermore, 4 am very much
pleased to inform you that our board
of directors have also an auxiliary
agreement with the party of the Sec
ond part of said option to the effect
that should this option be exercised
giving them control no privilege or L.
cense will he given to any person or
corporation to use our tunnel for work
ing, developing or prospecting any ad-
~jacent mining property without paying
to u company an equivalent of a one
fourth interest in said adjacent prop
erty. This, ! consider, a great victory
for our company as | have reason L
think that the owners Of adjacent
property have been an obstacle to our
success in the hope of by some means
acquiring the use of our long and ex-
pensive tunnel in prospecting their
property without paying or contribut-
ing to it's expense.
Il have been negotiating this deal
with Mr.. Shelton for the last two years
and he had given the property a very
careful examination, but the war com
ing on at that time the deal was hung
up, but now we are reaping the bene-
fit of the work I did then.
1.-THE Brainard-Ross combine has
appealed the law suit lin which the
district court granted the judgments)
to the state supreme court, ! presume,
for the sole purpose of holding up any
deal we might make, as they have
absolutely no chance of reversing the
findings Of the district court. Mr.
Brainard still refuses to turn over the
company books to the company, ana
we must wait until next term of court
to compel him, as they demand a jury
trial and the jury for the present term
of court has been discharged.
Now, the party of the second part
to this option, (Mr. Shelton), in order
to avoid any hesitancy on the part Of
his principal in closing this deal, be-
cause of this unsettled litigation, has
deemed it wise and necessary for the
action of the board of directors in Civ
ing this option to he ratified by the
stockholders. of our company. SO you
are respectfully requested to attend to
this matter without delay and if it
meets with your approval signify by
signing and returning the enclosed
ratification without delay as it must
be here by the 18TH inst
A blank form of ratification of the
option is also enclosed for the stock
holders to sign and return.
Substance Of Option.
Mr.. Shelton is given an option on
$50, 900 shares of the treasury stock of
the company at 20 cents per share, less
a commission Of 10 per cent, or 2 cents
per share, for making the sale. The
agreement is dated December 1 and
provides for a payment Of $4,000 within
fifteen days from date, 5000 within
sixty. days from date, and the balance
OF the purchase price, less the com
mission of 10 per cent, amounting to
$164,16O, to be paid within one year
from date Of agreement. The company
agrees to execute certificates Of stock
for the full amount and place them In
escrow in the First National bank to
be delivered to Mr.. Shelton upon MAX
Ing the payments above stated. In
addition to making the payments above
stipulated, the agreement requires Mr.
Shelton to begin actual mining opera
tons within sixty days from date and
prosecute the same continuously with
a force Of not less than 20 men working
underground for at least 20 days a
month, and he Is required to eNpend In
such mining operations not less thar