CanGold shareholders give nod to Kazakhstan merger proposal

Shareholders of Amalgamated CanGold (TSE) have approved a proposed merger with privately owned Kazakhstan Goldfields. The new company will be called Central Asia Goldfields.

CanGold has asked the Toronto Stock Exchange to delist the company’s shares until new-listing requirements can be met.

At presstime, the new company was expected to be listed on the Canadian Dealing Network (CDN).

Meanwhile, Kazakhstan Goldfields has increased its interest in four gold deposits to 60% from 50%.

The company has also moved to take over management of the Kazakh government-owned gold enterprise Kazakhaltyn, which holds five producing gold mines (previously placed under option to the private company). The government says it will respond by February.

Amalgamated CanGold has made a private placement of 549,020 units priced at $5.10 each. A unit consists of one share, and one warrant entitling the holder to buy one share at $6.25 within two years of issue. Proceeds will amount to $2.8 million.