Guyana explorers to merge

The boards of directors of South American Goldfields (TSE) and Golden Star Resources (TSE) have agreed in principle to merge the two companies.

Both companies have gold and diamond exploration properties in Guyana, South America. Golden Star also owns 35% of Omai Gold Mines, which is building the Omai gold mine. Production is expected to begin in December at a rate of 255,000 oz. per year.

David Fagin, a former president of Homestake Mining (NYSE), was recently appointed chairman and chief executive officer of both Golden Star and South American Goldfields. Alan Spence will become executive vice-president of South American Goldfields; David Fennell will continue as president of Golden Star.