Deak Resources

Deak Resources Corporation was a Canadian mining company that was formed by a merger in 1989. It became AJ Perron Gold in 1994 and operated the Kerr-Addison Mine.

Deak Resources Corporation
IndustryMining
Predecessor
  • Wilco Mining Company, Seadrift International Exploration Limited and Deak Ariadne Limited
Founded1989
SuccessorAJ Perron Gold
Headquarters
Canada

AJ Perron Gold became delisted from the Toronto Stock Exchange in 1998.

History

The company operated as a subsidiary of Deak International Resources Inc, formed by the merger of Wilco Mining Company, Seadrift International Exploration Limited and Deak Ariadne Limited in 1989.[1][2] It was traded on the Toronto Stock Exchange.[1]

In February 1989, the company reached an agreement with MacDonald Mines Exploration to reopen the West MacDonald zinc mine in Dufresnoy, Quebec.[3] In 1990, the company bought the Kerr-Addison Mine for $4.1 million (mostly by assuming existing debt) and used the location to mill ore from various nearby mines.[4][5] Operations were managed by the company's subsidiary GSR Acquisition Corporation.[6] The company was fined $50,000 by the Ontario Ministry of the Environment in 1992 after it polluted Larder Lake with cyanide and heavy metals.[7] After running into financial challenges, the company closed the mine and terminated the employment of the workers.[8]

In May 1993, brothers John and Alex Perron of Kirkland Lake used their company Gwen Resources to buy a controlling share of the struggling company and appointed Alex Perron as company president.[8] The brothers renamed the company AJ Perron Gold in 1994[5][4] and made plans to increase production at the Kerr-Addison Mine.[8]

After owing $2.1 of taxes to the township of McGarry, the company's assets were seized by bailiffs. Threats of litigation by the company against the township were made, but were not followed through.[4][5] The company was delisted in 1998.[4]

References
  1. "Deak amalgamates". National Post. 3 January 1989. p. 14.
  2. Mining Steak Widened, The Province, 13 March 1988, P. 45
  3. "Zinc mine deal near". The Montreal Gazette. 18 Feb 1989. p. 74.
  4. Obituary: Alex Perron, The Northern Miner 30 September 2002, p.5
  5. Dan Westell (14 June 1997), Township and mine in tax showdown, National Post, p. 6
  6. "Kirkland Lake in its prime despite its image in movies". National Post. 2 April 1991. p. 59.
  7. Ontario fines Deak $50,000 for Larder Lake cyanide spill Archived 2023-06-02 at the Wayback Machine, The Northern Miner, 19 October 1992
  8. Franczyk, Walter (11 Feb 1994). "Deak plans to expand gold milling". Kirkland Lake Gazette. p. 14.
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