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Gold/Mining/Energy : IMARK Corporation (IAK was Durkin Hayes DHP)
IAK 70.79-0.1%Nov 15 4:00 PM EST

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To: Pierre J. LeBel who wrote (16)3/19/1998 3:18:00 PM
From: DANIEL  Read Replies (1) of 57
 
Based upon my limited knowledge of Canadian Securities law, I don't think that they obtained an option to purchase the remaining 20%. Under the Ontario Securities Act (OSA) options to purchase shares are included in the calculation for detemining whether someone has gone over the 20% ownership threshold for definging a TOB. While the buyer could have obtained the options together with the shares, they would not have been able to pay greater than 110%(approx.-maybe 120%) of the market price (average for past 30-90 days) of DHP shares since this is a private transaction (the OSA seeks to ensure that control persons won't be the sole beneficiaries of TOB).

The buyer may have obtained a right of first refusal for the remaining 20% of the shares since this would not be considered in the calculation of shares owne for the purposes of a TOB.

It may be possible to find this out from AM but I'm not sure. I'm also not positive about the foregoing but I am quite comfortable that it is correct. If the buyer did obtain an option a right of first refusal, I'm quite certain it will be disclosed in the OSC filing and probably also in a press release.

I hope the above has not been to confusing.

DANIEL
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