A merger is being discussed by Brohm Resources and MFC Mining. According to Brohm President Wayne D. McClay the share exchange would be three mfc shares for two Brohm, subject to a fairness opinion from “a recognized Canadian investment institution.”
He confirms an associated company, Blackdome Mining, will not be part of the merger. mfc has a 51% interest in Blackdome which operates a highly successful gold mining operation 160 miles north of Vancouver.
McClay says Blackdome will remain the group’s Canadian mining entity whereas the merged company (possibly called Brohm) would be involved primarily in the United States. Brohm has a 100% interest in the Gilt Edge project in South Dakota which is being readied for production. At time of writing, the company was closing two private placements which were to be used to complete development work on the project.
The gold heap leach operation is scheduled to produce about 40,000 oz gold per year from oxide reserves beginning in June 1988. Sulphide reserves are also available and production from this phase could generate approximately 140,000 oz per year, he states. Ventures Trident, a limited partnership in the U.S., has a 40% interest in Brohm and about 16% of MFC, he adds.
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