In a bid to consolidate some of the holdings within his Toronto mining group, Patrick Sheridan is proposing to split Madeleine Mines’ (TSE) platinum and gold assets into two separate concerns.
Pending shareholder approval at a meeting in Montreal Oct. 15, Madeleine’s 50% owned Lac des Iles palladium/platinum project near Thunder Bay, Ont., will be placed in a new company to be known as Madeleine Platinum Mines Ltd. Sheridan is also proposing to establish a second company known as Madeleine Mines Ltd. to contain Madeleine’s 25.5% interest in the San Andres heap leach gold mine in Honduras.
If shareholders give Sheridan the go-ahead, they will each receive one share of Madeleine Mines and one share of Madeleine Platinum.
Sheridan couldn’t be reached for comment on this story but insiders say the asset split will make it easier to evaluate both companies if Sheridan attempts to merge Madeleine Platinum with Boston Bay Mines and Sheridan Platinum Group. The latter two hold a combined 50% in the Lac des Iles project which is the subject of a legal dispute between Madeleine Mines and the Ontario Ministry of the Environment.
At a hearing in Thunder Bay, Ont., Madeleine is expected to plead not guilty to charges that it violated Ontario’s environment laws by constructing and operating a 3,000-ton-per-day mill without obtaining a permit.
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