High Desert Minerals (hdr-v) has entered into a non-arm’s-length letter of intent to merge with Royal Hal, SLH and Gold Trend — private companies owned by Sean and Lee Halavais.
The Halavaises are the majority shareholders of High Desert, holding 37% of the company’s 8 million shares.
Royal Hal owns a 1% net smelter royalty (NSR) in the Betze-Post mine, operated by Barrick Gold (abx-t) in Nevada.
SLH owns a 2% NSR in the High Desert gold property — a 60-40 joint venture between Newmont Gold (nem-n) and Barrick, north of Newmont’s Carlin gold mine in Nevada.
Gold Trend owns 10 gold exploration properties, which comprise almost 50 sq.
miles throughout northern Nevada.
High Desert will acquire the package of assets, valued at US$52 million, by issuing 45 million shares to the Halavaises, subject to an adjustment based on the price of gold prior to closing.
The newly issued shares will give the Halavaises a 90% interest in High Desert. The company is also in the process of setting up a secondary market to create greater liquidity.
The transaction is subject to regulatory and shareholder approval.
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