Doublestar and Selkirk plan merger

Vancouver – Ruddock Creek joint venture partners Doublestar Resources (DSR-V, DOUBF-O) and Selkirk Metals (SLK-V, SKRKF-O) intend to merge in an effort to fast-track development of the zinc-lead deposit located about 100 km north-northwest of Revelstoke in southeastern British Columbia.

Both companies have entered a binding letter of intent for the merger that would create a single company with about $14 million in current assets and a large base metal property portfolio in the province.

The plan foresees each Doublestar common share exchanged for one-half a Selkirk share in addition to all outstanding warrants and stock options also exchanged for economically equivalent instruments.

Selkirks president Gordon Keevil described the transaction as, financially positive to Selkirk and will consolidate the working interest in Ruddock Creek putting Selkirk in a much stronger position to advance its exploration and ultimate development.

In the joint press release, Doublestar CEO Alan Savage stated, Doublestars board of directors fully supports the Selkirk proposal. This transaction can effect enhanced shareholder value for both companies by placing the world-class potential of the Ruddock Creek zinc-lead deposit under one roof.

Drafting of a definitive agreement is expected by the end of March with the transaction expected to close by late-June, subject to regulatory and shareholder approvals.

Ruddock Creek is a sedimentary exhalative (sedex-type) deposit of stratabound zinc-lead mineralization hosted in calc-silicate rocks. The main mineralized zone (E-zone), that has undergone a significant amount of past exploration, is a massive sulphide lens of up to 46 metres thickness.

Drilling has traced E-zone mineralization over a strike of about 250 metres and across 200 metres of width. Based on the most recent drill results, the zone shows more than 400 metres of downdip continuity from its surface expression.

Step-out drilling to test the western extension potential of mineralization has encountered significant zinc and lead grades.

Selkirk holds 70% interest in the Ruddock Creek joint venture with Doublestar holding the remaining 30%.

Shares of Doublestar jumped 39% on the March 2nd merger plan to close up 11 at 39 apiece while Selkirk closed the day even at 86 per share.