San Gold to merge with Kerr Mines

Winnipeg-based junior miner San Gold (TSX: SGR) is merging with Toronto-based explorer and developer Kerr Mines (TSX: KER), where the former intends to transfer its turnaround plan at the Rice Lake complex to Kerr’s recently acquired...

Topics

Commodities

Companies

Winnipeg-based junior miner San Gold (TSX: SGR) is merging with Toronto-based explorer and developer Kerr Mines (TSX: KER), where the former intends to transfer its turnaround plan at the Rice Lake complex to Kerr’s recently acquired Copperstone gold mine in Arizona, in a move that will put it closer to becoming a mid-tier producer.

The proposed all-share combination reflects San Gold’s new strategy of controlling costs and running high grade mines at optimum levels to “match the geometry of the orebodies,” the company’s president Gestur Kristjansson said in a release.

Not too long ago, San Gold suffered from setting its production targets too high and not being able to meet them at its Rice Lake complex near Bissett, MB. This frustrated investors as it was operating the three mines within that complex, namely 007, Hinge and Rice Lake, at a loss.

To fix its problems, San Gold installed a new senior management team, hiring Kristjansson as president and CEO and Mandeep Rai as chief financial officer in March. It later gave the CEO role to mining veteran Greg Gibson in June.

Gibson, who is also the CEO of Kerr Mines, told the Financial Post in June that San Gold has changed its focus to producing less but more profitable ounces, while scaling back equipment and improving mill recoveries.

Read the complete article at NorthernMiner.com/news/san-gold

Comments

Your email address will not be published. Required fields are marked *

Mar 27 2024 - Mar 28 2024
Apr 08 2024 - Apr 09 2024
Apr 15 2024 - Apr 16 2024
Apr 16 2024 - Apr 16 2024