Struggling juniors Campbell Resources (CCH-T), MSV Resources (MSV-T) and GeoNova Explorations (GNE-M) have received final approval for their proposed merger from the Superior Court of Quebec.
All articles of arrangement and amendment have been filed with the appropriate authorities and the merger is slated to come into effect on June 30.
MSV will amalgamate with a wholly owned subsidiary of Campbell. MSV shareholders will receive one Campbell share for every 4.1 MSV shares held. GeoNova shareholders will receive Campbell shares on a 1-for-10 basis. All three companies will then fall under the Campbell banner. Campbell will have about 30.4 million outstanding shares.
The new Campbell plans to focus its efforts on its principal mining properties in the Chibougamau region. Initially, the company will work on the startup of the Copper Rand project, as well as the studies and financing needed to restart operations at the Joe Mann mine.
MSV brings with it a 16% stake in the Copper Rand 5000 project in Chibougamau. The company recently completed financing for the project. A deepening of shaft number 4 will begin in August. The project’s resources are pegged at 1.9 million tons grading 1.55% copper and 0.097 oz. gold per ton.
Campbell plans to resume mining at the Joe Mann underground gold mine in northern Quebec by January. The plan calls for the renegotiation of an existing production royalty held by Repadre Capital (RPD-T), whereby royalties would only be paid when the gold price is US$325 per oz. or higher. In return, Campbell will issue Repadre 800,000 shares.
Resources at Joe Mann stand at 1.7 million tons grading 0.326 oz. gold and 0.28% copper per ton.
Campbell expects the mine to churn out about 67,600 oz. gold and 4 million lbs. copper in 2002. I subsequent years, the company expects to produce 72,000 oz. gold and 23.2 million lbs. copper overall, as the Corner Bay copper project comes on line.
GeoNova brings to the fold 17 properties. Most of them are in the Lebel-sur-Quevillon and Chibougamau areas.
The post-merger Campbell will employ almost 400 people.
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