VANCOUVER and SASKATOON – Diamond exploration companies SHORE GOLD and KENSINGTON RESOURCES have announced their intention to merge. Shore will offer 0.64 of its common shares for each common share of Kensington, a 35% premium over Kensington’s 30-day average closing share price. The deal needs the approval of at least two-thirds of Kensington shareholders, and is due to close near the end of October.
The combined company plans to consolidate the holdings of both entities in the Fort a la Corne region of Saskatchewan, including Shore’s 100% interest in the Star kimberlite and Kensington’s 42.245% interest in 63 other kimberlitic bodies. The exploration programs already committed to by the companies for this year will continue.
Leading the integrated management team will be Shore’s Kenneth MacNeil as president and CEO. Kensington’s James R. Rothwell will be the non-executive chairman of the combined board. Other board members include Arnie Hillier, Neil McMillan, Ronald Walker and Harvey Bay of Shore as well as Robert McCallum and William Stanley of Kensington.