D’Or Val, Perron merger in works

Two Hughes-Lang companies active in northwestern Quebec, D’Or Val Mines and Perron Gold Mines, have agreed in principle to amalgamate.

D’Or Val operates a producing gold mine near Val d’Or, while Perron is gearing up for production sometime this spring at its Sleeping Giant property near Amos. The agreement is subject to shareholder and regulatory approval.

The amalgamated company, as yet unnamed, will acquire all of the assets and assume all of the outstanding liabilities of D’Or Val and Perron. The two companies have been operating with common management.

D’Or Val’s Beacon property has turned out 8,000 oz gold since going into production in 1987. A 750-ton-per-day mill on the property processes ore from the Beacon property and offers custom milling services.

At the Sleeping Giant property, ore reserves stand at almost 2 million tons grading 0.22 oz gold per ton; construction of a mill with a capacity of more than 1,000 tons per day is near completion.

The two companies are currently earning a combined 50% interest in the Beaufor property, in close proximity to the Beacon property, from Louvem Mines. The pair must spend $7 million on exploration work to earn the property interest; about $3 million has been spent to date.

The two companies have other property interests in Quebec, Ontario, British Columbia, the Yukon and Mexico.

D’Or Val has agreed to advance up to $8 million to Perron for continued development of the Sleeping Giant project.