DRX adds MicroMin Res. to expanding portfolio

At a Feb 24 meeting in Vancouver, shareholders of MicroMin gave their approval for a plan that would result in an amalgamation of the two companies.

Based in California, MicroMin has a number of gold properties in the Pacific Islands of Micronesia and the western United States which are considered promising by acquisition-minded DRX.

In a bid to become a force to be reckoned with in the precious metals industry, DRX recently acquired all the outstanding shares of Westland Minerals Exploration Co., a Colorado company with interests in California and Nevada.

Last November, DRX sold a number of disputed claims in the Randsburg, Calif., area to Echo Bay Mines (TSE) for $4 million cash plus a 1.5% net smelter revenue payment on future production. The claims were previously owned by Westland.

MicroMin is considered important by DRX because of its U.S. and Pacific gold properties and because it gives the New York company access to the expertise of Chairman Henry Colen.

Under the terms of the merger, which is valued at about $3.5 million(US), DRX is exchanging one common share for two common shares of MicroMin. DRX will also inject $1 million into the MicroMin treasury to finance the company’s 1989 exploration program.

Having brought a second gold company under its wing, DRX will move to take over Toronto-based McFinley Red Lake Mines (TSE). Attracted by McFinley’s Bateman Twp. gold project, DRX will attempt to take control of the board.

In a move which DRX Chairman Robert Clarke said is designed to protect his company’s 8.7% stake in McFinley, DRX recently called for a special meeting of McFinley shareholders. When the meeting is held, DRX will try to have three of its own nominees elected to the McFinley board and seek the removal of two existing directors.

“We are also giving serious consideration to a share exchange offer for McFinley as we believe McFinley could be developed more advantageously under both DRX’s management and ownership,” said Clarke.

McFinley is having trouble getting the necessary financing to complete a bulk test at the Bateman Twp. project.

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