Marker, Varna unite as Varna Gold Inc.

Calgary-based Marker Resources has merged with Varna Resources to form a new amalgamated corporation called Varna Gold Inc.

The new company will hold working interests in approximately 400,000 net acres of mineral claims in Newfoundland and Manitoba.

Under the terms of the amalgamation, each Marker share will be converted to three quarters of a common share of Varna Gold Inc. while each Varna share will be converted to one common share of Varna Gold.

Following the amalgamation, Varna Gold will have approximately 7.5 million shares issued and outstanding. An Alberta Stock Exchange listing is also expected to follow.

Marker and Varna have a number of properties under exploration. Recent activity includes two joint venture agreements with Selco Division BP Canada Resources at Jacksons Arm, Nfld., and Fox River, Man. Under a third joint venture with Rio Algom, the company can earn a 50% interest at Huxters Pond, Nfld.

According to Marker Resources President Gordon Barron, Varna Gold has budgeted $2.5 million for various drilling programs on its properties. He says the company is well financed with $10.5 million committed by First Exploration Fund 1987/88.

Drilling has begun at Jacksons Arm and Huxters Pond while Selco has complete drilling at Fox River.