NEVADA – Rob McEwen, the man who made such a success of Toronto’s Goldcorp, appears to be doing the same for U.S. GOLD of Denver. His company said on March 5 that it intends to acquire four companies active in the Cortez Trend. He has set his sights on Toronto-listed WHITE KNIGHT RESOURCES, NEVADA PACIFIC GOLD, CORAL GOLD and TONE RESOURCES.
The deal is worth Cdn$291.7 million. U.S. Gold will issue common shares in return for all the outstanding shares of the four companies.
What will McEwen get out of the deal? White Knight has 14 properties covering approximately 22,000 hectares in the Cortez Trend. Nevada Pacific’s Keystone project is a joint venture with PLACER DOME, and the company holds the nearby Cornerstone property. CORAL GOLD holds properties in the Battle Mountain-Eureka Trend either wholly (Robertson) or in joint ventures (Excluded, Norma Sass and Ruf). Tone Resources controls eight or nine projects in north-central Nevada-.
The showpiece of U.S. Gold’s Nevada holdings is the Tonkin Springs project, which is surrounded by properties belonging to the four companies U.S. Gold wants to acquire. It is also immediately south of ground held by Placer Dome. Based on drilling to date, Tonkin Springs is estimated to contain 1.4 million oz of gold. (Go to www.USGold.com and take a virtual tour of the Cortez Trend.)