| Deal Description | Pan American Sulphur Company used a portion of the net proceeds from this transaction to discharge outstanding short-term notes of the company, payable to National City Bank of Dallas. The funds so borrowed were advanced to the company's subsidiary, Gulf Sulphur Company de Mexico, S.A ("Gulf"), and were used for expenses such as drilling costs, salaries, and wages, and toward acquiring the use of a site for the sulphur plant to be constructed with additional proceeds from this deal. The plant had a hot water capacity of 3,300,000 gallons per day, for the production of sulphur by the Frasch process. Additional portions of the proceeds were used for exploration and development of the Jaltipan and Potrerillos concessions and amplifications of Gulf. Any balance was used for working capital after the sulphur plant commenced operations. |
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