Spring brings not only welcome warmth but also news of mergers.
IAMGOLD CORP. of Toronto and WHEATON RIVER MINERALS of Vancouver are combining to create a new one-million-oz gold equivalent producer. Both boards of directors have agreed that each share of Wheaton River will be exchanged for 0.55 share of IamGold. The new company will have operating interests in seven goldmines in the Americas, West Africa and Australia. The near-term growth strategy foresees adding 300,000 oz/year to production; it includes developments in Brazil and Mexico, plus an expansion in Ghana.
NOVAGOLD RESOURCES and SPECTRUMGOLD, both of Vancouver, will soon be under the same management. Shareholders of the 44% of SpectrumGold not owned by NovaGold will be offered 1.0 NovaGold share for each 1.35 SpectrumGold shares held. The new NovaGold will control a combined net resource base including 17 million oz of gold, 93 million oz of silver and 7.8 billion lb of copper. It hopes to grow into a mid-tier North American producer before too long.
Shareholders of STRONGBOW RESOURCES and NAVIGATOR EXPLORATION have approved the amalgamation of the two Vancouver-based companies. Strongbow will acquire all the common shares of Navigator in exchange for 0.70 Strongbow shares for each issued and outstanding share of Navigator. The new business will continue to seek out diamond, precious metal and base metal deposits on its 40 properties in Canada's north.
Lastly, here is news of a gold/nickel alliance. South Africa's ANGLO AMERICAN has sold its 20% share in GOLD FIELDS LTD. to Norimet Ltd., a wholly-owned subsidiary of Russia's MMC NORILSK NICKEL. Gold Fields annual gold output is 4.33 million oz. It also owns a platinum project in Finland. Norilsk, which produces palladium, copper, cobalt, platinum, gold, silver and other precious metals as well as nickel, is now the largest shareholder of Gold Fields.