Expediting firms complete deal
Stewart sells stake in Kivalliq firm to BBE
NNSL (Mar 15/99) - Businessman Gord Steward has sold his 35 per cent stake in a Baker Lake expediting company, Peter's Expediting, to Braden-Burry Expediting.
Stewart -- who is president, CEO and a director of Braden-Burry Expediting -- sold the shares through Stewart Holdings Ltd., a company he controls.
Stewart, who owns just over 50 per cent of Braden-Burry, said Alberta auditing firm Knull, Hales and Chapelsky determined what is a fair price for the shares in Peter's Expediting with the Alberta Securities Commission approving the deal.
All directors, including Stewart, Braden-Burry vice-president Bill Powers and Mack Travel president Jim Robertson, both of Yellowknife, as well as Calgary lawyer Debra Poon and Alberta rancher Bryan Robertson approved the move.
Braden-Burry is a publicly-held company based in Yellowknife. Its shares trade on the Alberta Stock Exchange (ticker:BBP).
Stewart adds that the acquisition offers Braden-Burry a growth opportunity.
East-West alliances are "considered critical to the continued development of Canada's North as the NWT draws closer to its date of division," he said.
"We're convinced Peter's Expediting offers Braden-Burry Expediting an opportunity for growth and provides access to new markets."
Peter Tapatai, William Tapatai and Peter Tootoo retain 65 per cent of Peter's Expediting.
A substantial amount of the company's revenue is generated by overland hauling services for mining and exploration companies near Baker Lake.
Peter's Expediting's largest client is Cumberland Resources which operates a gold exploration program at its Meadowbank site 70 kilometres from Baker Lake.
Cumberland also owns a stake in the Meliadine West and Meliadine East projects near Rankin.
Cumberland recently updated the Meliadine West resource to 6.5 million ounces of gold from 3.2 million ounces.
Peter's Expediting is registered with Nunavut Tunngavik Inc. as an Inuit-owned company.
As part of the deal, Braden-Burry will get at least $2,000 a month from Peter's Expediting for providing management and consulting services.
The terms of agreement also include assumption of a shareholder loan by Braden-Burry in the sum of a $35,032.
The shareholder loan is interest-free and on a demand basis. If Braden-Burry sells all or a portion of their shares, the unanimous shareholders agreement provides for a proportionate repayment of the shareholder loan by Braden-Burry.