In all the clamour and stick-waving that accompanies the Inco-Falconbridge, Teck Cominco-Inco and Xstrata-Falconbridge offers, one can easily forget that there are successful combinations of smaller companies that will be effected smoothly.
GAMMON LAKE RESOURCES of Halifax and MEXGOLD RESOURCES are joining forces, and why not? Bradley Langille is CEO of both companies. Gammon Lake is offering 0.47 of a common share in exchange for each Mexgold share. The combined company will produce more than 235,600 oz of gold and 10.5 million oz of silver annually at costs well below US$200/oz of gold equivalent. Both companies have mines and projects in Mexico. See the investor presentation at www.Mexgold.com.
The merger of ERDENE GOLD and KAOCLAY RESOURCES, both of Halifax, has been approved by shareholders. Kaoclay investors will receive 1.65 shares and 0.5 warrants of Erdene for each Kaoclay common share they hold. The warrants will entitle holders to acquire one Erdene share for $1.60 until June 15, 2009. Erdene’s focus has been on precious metal, base metal and energy projects in Mongolia (see www.Erdene.com). Kaoclay brings to the union a 20% interest in the project to reopen the Donkin colliery in Nova Scotia (with Xstrata) and two industrial minerals projects in the United States.