A proposed merger between Total Erickson Resources (TSE) and its affiliate Getty Resources (TSE) will result in the creation of a new company called Total Energold Corp. The new entity will have consolidated assets of $260 million, including $58.6 million in cash and marketable securities.
Of the 1988 exploration budget of $45 million, $20 million is budgeted for minerals and $24 million for oil and gas.
Total’s mineral activity remains focused on gold with two operating mines in B.C. and a 49% interest in the Tundra gold project in the N.W.T. Operated by Noranda Exploration, the Tundra project hosts undiluted possible reserves of 4.75 million oz of gold.
Shareholder approval for the merger will be sought at a special meeting set for Sept 14. The restructuring proposes that Getty issue one common share for each 2.8 Total Erickson shares held.
After the deal is completed, 71% of Total Energold will be held by Total Compagnie Francaise des Petroles, a French company.
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