Three struggling juniors active in the Chibougamau region of northern Quebec —
The terms of the deal have not been released, though details will be forwarded to the shareholders of all three companies by the end of April.
Brokerage house Griffiths McBurney & Partners will help manage the transaction and provide a fairness opinion to each group of directors and shareholders.
The companies say the merger will result in annual savings of about $4.5 million and help ensure that the Chibougamau operations remain profitable at current gold and copper prices.
The point man in the merger is Andre Fortier, who serves as president and chief executive officer of Campbell, chairman and CEO of MSV, and president and CEO of GeoNova.
Campbell owns the Joe Mann underground gold mine, south of Chibougamau, where operations were suspended in November as a result of operating difficulties and low gold prices.
Since the suspension, Campbell has prepared a plan that would permit operations to resume once development and exploration work is completed below the 2,500-ft. level.
Resources at Joe Mann stand at 1,681,900 tons grading 0.326 oz. gold per ton (548,299 contained ounces) and 0.28% copper.
MSV, which recently emerged from financial restructuring, operates, and owns a 16% interest in, the Copper Rand 5000 project, near Chibougamau.
The company also holds other properties in Quebec, including Corner Bay (copper) and Eastmain (gold).
MSV says $45 million worth of financing for the Copper Rand 5000 project has been concluded, and work on the project is imminent.
Resources are pegged at 1.9 million tons grading 1.55% copper and 0.097 oz. gold per ton.
GeoNova holds interests in 17 properties, most of which are in the Lebel-sur-Quevillon and Chibougamau areas.
The company’s Discovery project hosts inferred resources of 2.3 million tons grading 0.15 oz. gold, whereas its Chevrier project, near Joe Mann, has a resource of 3.9 million tons grading 0.15 oz. gold.
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