Already affiliated by way of common management, U.S. Precious Metals (TSE) and Centurion Gold (TSE) are planning to merge into a consolidated company with a greater asset base and exposure to opportunity. Although still subject to regulatory and other approvals and the receipt of a fairness opinion, the juniors plan to merge on the basis of one consolidated company share for each share of USPM and Centurion.
USPM’s key asset is a 40% interest in the Mother Lode mine near Beatty, Nev., which produced 16,480 oz. gold during the first half of 1989. Production costs so far this year have averaged under US$200 per oz., and the mine is currently 30% ahead of scheduled production.
Centurion has interests in 14 mineral properties in the western U.S. and it is expecting royalties of US$600,000 from operations on some of the properties this year. In addition, the company’s Gray Eagle open pit, copper-gold project in northern California is at the feasibility stage.
Management of both companies said the business strengths of the juniors are complementary as USPM is seeking new opportunities and Centurion has several mineral properties which it is currently seeking to develop. The directors said the proposed business consolidation would “greatly enhance shareholder value and cost effectiveness” and make it easier to obtain financing and negotiate new opportunities.
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