APAC to merge with Asian merchant bank

Vancouver — Vancouver’s APAC Minerals (APC-V) intends to merge with Golden China, a Toronto-based private merchant bank. The move is designed to give APAC better access to China’s mining industry.

Under the deal, current APAC shareholders would end up with a 44% interest in the new company, which would be named Golden China Resources; Golden China shareholders would hold the remainder. The proposed exchange is 2.4 APAC shares for every Golden China share.

APAC would issue 48 million shares to Golden China’s shareholders, which would result in 86.6 million shares outstanding. The resulting company will have cash and liquid securities exceeding $20 million.

The board of directors of Golden China Resources will consist of nine members: six from Golden China and three from APAC. The new company would benefit from APAC’s expertise in exploration and development and from Golden China’s financial assets and connections in China (Golden China is sponsored by Kingsway Group, a mid-market financial services provider with a strong Asian presence).

Meanwhile, APAC will continue to explore and develop its properties in southwestern China and Inner Mongolia.

A soil geochemical survey recently extended the strike length potential of APAC’s Nibao South gold discovery in Guizhou province. Drilling there has resulted in intercepts of 9.66 metres grading 7.05 grams gold per tonne, 8 metres grading 7.4 grams gold, 24 metres grading 3.19 grams gold, 11 metres grading 7.03 grams gold, and 12 metres grading 6.74 grams gold.

The mineralization at Nibao is described as Carlin-style.