Vancouver – Following a three year experiment in specialization, Oro Gold Resources (OGR-V) and Oro Silver Resources (now delisted) are coming back together under the banner Oro Mining.
Oro Silver was spun out of Oro Gold in 2007 to better focus the companies, but management has now decided that it is better to pool resources to advance its projects.
Darren Bahrey, president of both companies, stated that “with Oro Silver’s assets becoming gold dominant, the strategy of the combined companies will simplify the corporate structure, consolidate management and reduce costs.”
Oro Silver’s main asset is the El Compas gold-silver project in Zacatecas, Mexico, with a resource of 310,000 indicated tonnes grading 5.82 grams gold per tonne and 59.09 grams silver per tonne. The inferred resource stands at 234,000 tonnes grading 4.94 grams gold and 45.69 grams silver.
Oro Gold’s main asset is the Trinidad project in Mexico’s Sinaloa State. There, the Taunus target hosts a resource of 4.5 million inferred tonnes grading 1.39 grams gold for 200,000 contained oz.
The re-combining of the company has Oro Silver shareholders receiving 0.25 of an Oro Gold share for each of their shares, with the same ratio for warrants and options. The deal gives Oro Silver shareholders an 11% premium on a 20-day average. Oro Silver shareholders approved the deal by 99% on Oct. 12 and the deal received court and exchange approval by the 21st.
With the deal complete Oro Mining should have about 84 million shares outstanding and over $5 million in the bank.
Oro Gold was up 2.5¢ or 6.6% to 40.5¢ on news of the merger. The company has a 52-week share price range between 30¢ and 88¢. Oro Silver was trading at 9.5¢ when it was halted.
I am from Oro Province in Papua New Guinea, I was wondering if this company is related to my Province (Oro), can you clarify further.