Canhorn sells Citadel

The sale of 1.6 million common shares of Citadel Gold Mines has been completed by Canhorn Mining Corp. The shares were sold for $2.8 million cash and a 1-year note for $1.18 million to a group of private investors. Citadel’s main asset is a gold property near Wawa, Ont.

Canhorn also expects to receive approximately $4 million from the sale of another 1.27 million shares of Citadel, sometime in early 1989.

Consideration is also being given to merging Canhorn with its parent company Great Horn Inc., a U.S.- based resources company. Great Horn forecasts sales of $100 million(US) in 1988, mainly from coal, chemicals, processing of metals and oil and gas. Any future merger will require independent valuations of each company and the approval of shareholders and regulatory authorities.