Silver King Mines (NASDAQ) and Pacific Silver Corp. (NASDAQ) each own 50% of Alta gold which operates the Robinson mine near Ely, Nev., a 75,000-oz-per-year gold producer with 600,000 oz of in-place reserves.
That operation, and Alta’s Golden Butte mine, are now part of a joint venture with Echo Bay Mines (TSE) which placed four properties into the joint venture. Alta has a 60% interest in the venture and is operator.
“Merging the two companies is not expected to be difficult,” said Dan Bushnell, their chief executive officer. “They have been effectively operating as a single company, jointly owning all properties, with the same officers and operating personnel, joint operating committees and joint annual report.”
The merger will require a simple majority vote. However, it will take several months to secure all governmental and stockholder approvals, he said. The companies’ stock in Alta Gold will be distributed to shareholders of the two companies “without tax liability,” he added.
Shareholders will continue to own stock in the surviving company which Bushnell said “will have cash assets of over $14 million and important mill and base metal mining properties in Nevada, Oregon, Idaho, and California.”
The boards of both companies have authorized the payment of 3 cents per share to Silver King shareholders and 2 cents to Pacific Silver stockholders payable Mar 30 to shareholders of record Mar 15.
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