Rockford makes bid for outstanding Tyranex shares

Rockford Minerals (TSE), a Toronto-based exploration company with interests in the Larder Lake, Ont., area, is making a takeover bid for Tyranex Gold (COATS), the company said recently.

Rockford said an offer to acquire the outstanding common shares of Tyranex is being made on the basis of one Rockford common share plus 10 cents cash per Tyranex share.

Rockford President Joseph van Baastelaar says he has received a commitment from Tyranex shareholders with 967,000 common shares or 47% of the company’s outstanding common shares.

It is expected that the offer will be conditional on acceptance by 75% of the outstanding common shareholders, said Baastelaar.

Based on 2.06 million outstanding Tyranex shares, the acquisition will cost Rockford $206,000 in cash plus 2.06 in share capital. The cash component of the acquisition is being financed through Rockford’s internal cash resources.

Those resources were boosted recently when Vancouver-based Nevada Goldfields (VSE) acquired a 51% interest in the company for $8 million.

Under that agreement, Nevada subscribed for 13,333,333 Rockford treasury shares at 60 cents each plus non-transferable warrants entitling Nevada to buy four million Rockford shares at 75 cents per share over three years. Kerr Addison

In the same agreement, Rockford bought a 51% stake in partners Northfield Minerals (ASE) and Northern Ranger Minerals (ASE) from Northfield Capital Corp. (COATS) for approximately $6.4 million.

Northfield Minerals and Northern Ranger are partners in a joint venture at the Larder Lake gold property which lies just west of the old Kerr Addison Mine.

If Rockford is successful in completing the Tyranex acquisition, the reward is a stake in the Tyranite gold mine property near Gowganda, Ont., where Gunnar Gold (TSE) and Mill City Gold (ASE) are collectively earning a 50% interest in Tyranex’s option to buy the 12-claim property.

Gunnar and Mill City are earning their interest by spending $5 million on exploration and development and by completing a feasibility study by August, 1990.

A former producer, between 1939 and 1942, the property contains drill indicated reserves of 276,000 tons in the Main Shear South lens and 250,000 tons between the 823-ft and 1,425-ft levels. This represents 105,200 oz gold at an ore grade of O.2 oz gold per ton.

Gunnar and Mill City recently completed 36,547 ft of diamond drilling in 72 holes. The work was directed at the main structure north and south of the old Tyranite mine shaft, the Duggan zone which is one mile west of the old shaft and a number of other targets.

On the Main structure, drilling along a strike length of 1,600 ft north of the old workings and to a depth of 450 ft has shown continuity of both structure and gold mineralization, Gunnar said recently.

The deepest hole, 1316-77, intersected the structure at about 450 ft below surface and returned 18 ft averaging 0.163 oz including 12 ft grading 0.201 oz.

Drilling on the Duggan zone, has identified gold mineralization in a series of lenses over a strike length of 500 ft and to a depth of 425 ft. However, additional work is required to clarify the distribution of the structurally complex mineralization, said Gunnar.