TORONTO, Ontario BLACK HAWK MINING and GLENCAIRN GOLD are merging on the basis of one Glencairn share for every three shares of Black Hawk. The combined company will operate under the name Glencairn Gold Corporation, and the current officers of Glencairn will continue as the management of the combined enterprise.
By pooling their assets the two companies become a mid-sized Central American gold miner. Black Hawk’s Limon mine in Nicaragua is boosting production to 67,000 oz/year in 2005. The underground mine has been in continuous operation since 1941, and had reserves of 973,000 tonnes at 6.2 g/t Au at the end of 2002. Glencairn owns the Bellavista project in Costa Rica where it plans to build a US$27-million open pit mine and heap leach operation. Production is estimated at 60,000 oz/year. Measured and indicated resources at Bellavista total about 10 million tonnes containing 376,000 oz of gold.
Check out the Black Hawk web site at www.bhkmining.com or the Glencairn site at www.glencairngold.com for more facts about these projects.
Completion of the transaction is subject to certain conditions including, among other things, completion of due diligence by each party, the execution of a definitive agreement and receipt of all regulatory approvals and third party approvals and consents, including approval by the shareholders of each company and the approval of the Toronto Stock Exchange and the TSX Venture Exchange. Subject to the fulfillment of all conditions,
the transaction is expected to be completed in the third quarter of 2003.