Bethlehem, Goldnev plan to merge; An agreement in principle has

Both companies recently appointed independent consultants to prepare a fairness opinion for the proposed merger, specifically to determine a share exchange ratio.

The principal assets of the two companies are their respective 50% interests in the Goldstream mine property and adjoining Brew project, about 60 miles north of Revelstoke, B.C.

The Goldstream is a stratabound copper-zinc deposit which saw limited production in 1983-84 before low metal prices forced its closure. Recoverable minable reserves are estimated at about two million tons grading 4.81% copper and 3.06% zinc.

It is estimated that the mine and mill (1,500 tons per day) could be brought back on stream in 3-5 months at a cost of $10 million. The companies noted that a number of proposals for financing the project are under review.

Goldnev and Bethlehem plan to spend a minimum of $500,000 on the Goldstream and the Brew project this season. The Brew covers the southwestern and southeastern strike extensions of the Goldstream stratigraphy and the companies note very little work has been done in this area to date.

In addition to their respective property assets, Bethlehem has $2.6 million in cash and Goldnev has a cash and marketable securities portfolio worth about $1.3 million.