Northgate, Westfield pool mining assets

Northgate Exploration (TSE) and affiliate Westfield Minerals (TSE) have agreed to pool several assets into a holding company. Known as Norwest Holdings, the company will own an 18% interest in Whim Creek Consolidated (TSE) and 35% in Ennex International.

Norwest, which will be owned 51% by Westfield and 49% by Northgate, is designed to hold Northgate’s non-North American assets which ultimately will be sold, the company says.

Both companies have also agreed to grant each other certain rights with respect to Norwest shares. These include Westfield’s right to purchase Northgate’s share of the company for $34.5 million until April 30, 1990. From May 1 to May 31 of the same year, Northgate has the right to sell to Westfield its 49% interest in Norwest for $29.5 million.

Whim Creek is a growing gold producer based in Australia whereas Ennex holds several gold properties in the advanced development stage in Scotland and Ireland.