Blue Horizon Industries Inc. (CNSX:BH) announced on Tuesday that a conditional deal to swap its subsidiary Blue Horizon Mining Inc. with Cayenne Gold Mines Ltd. (CNSX:CYN) for shares in Cayenne has fallen through.
In February, the Red Deer-based company said it had a letter of intent to exchange the shares in Blue Horizon Mining — of which Blue Horizon Industries has a 74 per cent interest — with Cayenne for 43.5 million common shares in Cayenne at a deemed price of five cents per share. That would have given Blue Horizon Industries a nearly one-third stake in Cayenne.
A release issued by Blue Horizon Industries said the parties have agreed not to proceed with the transaction, due to adverse market conditions.
“We are disappointed that the LOI (letter of intent) was terminated, but given Cayenne’s inability to raise capital in adverse market conditions, it was to everyone’s best interest to terminate the LOI and pursue other endeavors the management of BH Mining is exploring,” said Don Allan, president and CEO of Blue Horizon Industries.
In addition to its interest in Blue Horizon Mining, Blue Horizon Industries has a 100 per cent stake in Blue Horizon Bio-Diesel Inc. and Blue Horizon Energy Inc., the latter of which has operating divisions named Blue Horizon Contracting and Blue Horizon Energy.
Shares in Blue Horizon Industries are currently under a cease trade order.