Cons. West Dome is now defunct

R.B. Fort Lee, N.J.

The old stock certificate you hold for 100 shares of Consolidated West Dome Mines has interesting historical value but, unfortunately, the monetary worth is only a few dollars.

It is for a long-defunct company which we have traced to a publicly traded junior firm called American Reserve Mining (VSE). The latter company is involved in a joint venture program with Placer Dome (TSE) to dewater and explore the past-producing Paymaster gold mine property in the Timmins area of northern Ontario.

Over the years, there have been a number of share consolidations and name changes involving the original Consolidated West Dome Mines such that your certificate would be worth less than $5 today.

A review of our files indicates that the property and assets of Consolidated West Dome were acquired in June, 1927, by West Dome Lake Gold Mines on the basis of one new share for two old shares. The latter company was absorbed in 1930 by Paymaster Consolidated Mines with one new share exchanged for 10 old shares. That company changed its name in June, 1964, to Porcupine Paymaster Mines and issued one new share for three old shares. In 1968, the latter company merged by amalgamation with a bunch of other companies to form Associated Porcupine Mines. In that reorganization one new share was given for 3.57 old shares. In February, 1989, Associated Porcupine Mines amalgamated with a subsidiary of American Reserve Mining to form Paymaster Gold Mines, a private company. Shareholders of Associated Porcupine (other than residents of the U.S.) received $5 cash, 3/4 of a common share of American Reserve and 3/16 of a share purchase warrant. Each whole warrant entitled the holder to subscribe for one additional common share of American Reserve for $2.25 until Feb 28, 1994.

At last report, American Reserve and partner Placer Dome were still dewatering the old Paymaster shaft and the joint venture was planning to conduct some 10,000 ft of surface drilling this winter. A small pocket of known gold mineralization lies at depths of about 6,000 ft on the property.

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