Timmins Nickel gets control of Vedron

Control of Vedron (TSE) has passed to Timmins Nickel (TSE) following the latter company’s acquisition of Belmoral Mines’ (TSE) debt and equity interests in Vedron. Timmins Nickel now owns 6.8 million shares or 38.4% of Vedron and $5.8 million in Vedron debt formerly owed to Belmoral. The purchase price was $650,000, of which $250,000 was paid on closing. The remainder consists of two promissory notes for $200,000 due in July, 1991, and February, 1994.

Stephen McIntyre and Koos Schippers have been elected president and vice-president of Vedron, while Malcolm Slack has resigned as a director of Timmins Nickel. Slack’s escrowed shares were bought by other directors and his other shares were sold in a block trade to institutions.

Vedron’s gold property, which hosts 418,992 tons grading 0.16 oz. gold per ton, is about 12 miles from Timmins Nickel’s existing base metal operations.

The gold property has been developed by a ramp to 650 ft. with drifts into ore on five levels. The company is considering renovations to the Carshaw Mill so it can process about 500 tons of Vedron ore per day. The renovations would cost about $500,000 and gold output would total 30,000 oz. per year.

The Carshaw mill has been rehabilitated to accommodate the company’s nickel ore which was previously sent to Giant Yellowknife’s GOMILL at Timmins. Shipments from the Langmuir mine have been increasing with production expected to reach 300,000 lb. per month in March.