TORONTO – WESDOME GOLD MINES and RIVER GOLD MINES have agreed to merge into a single Canadian gold mining company. The deal will see Wesdome amalgamated with a wholly-owned subsidiary of River Gold. The merger is subject to regulatory and shareholder approvals.
The president of the combined company will be Paul Cregheur (currently president and a director of Wesdome and VP operations of River Gold). Murray Pollitt (currently president of River Gold, chairman of Wesdome and a director of both companies) will be the chairman. Pollitt has indicated a desire to stand down as an officer and director after the June 2006 annual meeting.
The combined entity will have approximately 75 million shares outstanding and expected market capitalization in excess of $100 million. Its head office will be in Toronto.
WESTERN QUEBEC MINES INC. (WQM), which is a significant shareholder of both River Gold and Wesdome, will own approximately 38% of the issued and outstanding post-consolidation River Gold shares. In addition, a number of the officers and directors of WQM are also officers and directors of Wesdome and/or River Gold.
The River Gold website is at www.RiverGoldMine.com.