Golden North, Thorco make deal to combine with Doelcam

Golden North Resources (TSE) and Thorco Resources (TSE) have signed a letter of intent to amalgamate with Doelcam Mining, a private Toronto company controlled by metallurgist Dennis McLeod. Should the merger proceed, the amalgamated company will have a variety of assets including $2.4 million in cash, full ownership of Doelcam Mining (Caledonia), a British company with extensive landholdings in Scotland. It will also have a 25% stake in the Filon Sur heap leach gold mine in Spain which produced 9,000 oz. last year, and 19% (with an option to increase to 28%) of a Hungarian marble company Pannon Marble Industries. Canadian assets would include full ownership of the Mascot Fraction mining claim which lies beside the Nickel Plate gold mine near Hedley, B.C. In addition to shareholder and regulatory approval, the merger proposal is also subject to certain conditions including the purchase of a number of shares of Centurion Mining, a private British firm, from another party for $980,000 cash and the discharge of certain Centurion and Thorco debts at a cost of $500,000. Under a tentative agreement among the three companies, the amalgamation will proceed on the basis of 4.5 million shares of the merged company for 22.9 million shares of Thorco, 3.7 million shares of the merged company for 5.3 million shares of Golden North and 2.4 million shares of the merged company for 3.2 million shares of Doelcam. Golden North recently severed all ties with Vancouver-based gold miner International Corona (TSE).