Aur to expand its influence in burgeoning Val d’Or camp

Three of the companies, including Mid-Canada Gold and Copper Mines (ME), Abitibi Resources (ME) and Pioneer Resources, are in the process of amalgamating.

By spending approximately $3.5 million, Aur can earn a 70% stake in each of three Louvicourt Twp., gold-copper properties held by the amalgamating companies. They include the 53-claim Bevcon-Buffaddison property owned by Mid- Canada (55%) and Abitibi (45%), the 12-claim Louvicourt East property held on a 50/50 basis by Pioneer and Dumont Nickel Corp. (ME), and the 19-claim Louvicourt prospect which is 100%-owned by Abitibi.

Aur has also agreed to loan Abitibi $150,000 in return for shares in the new company and when the merger is completed Aur will buy $300,000 in amalgamated company shares. Share exchange ratios for the proposed amalgamation will probably be based on their respective market prices when the deal was announced, March 7.

In addition, Aur has agreed to acquire a total of 1.5 million shares representing Kentish’s stake in Abitibi, Pioneer and Mid-Canada. Kentish is president of the three companies.

As a result, Aur is expected to carry out a substantial amount of new exploration work on the properties while providing working capital to the merged companies.

Assuming the merger is approved, Aur will provide office, administrative accounting and managements service to the merged company.

Under a separate agreement, Aur has the option to earn a 70% stake in Dumont Nickel’s wholly-owned Ball Twp., gold property near Red Lake, Ont. Dumont is Mid- Canada’s biggest shareholder with a 9.8% interest.

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