Golden Shield Resources has successfully completed the purchase of the old Kerr Addison mine and mill complex at Virginiatown, Ont., for approximately $38 million.
The deal also gives Golden Shield a 42% interest in the Larder Lake project located immediately west of the Kerr Addison mine and 50% of Kerr Addison’s interest in the Dasserat properties on the Larder Lake break located east of the mine in Quebec.
One of Canada’s best known mines, Kerr Addison has been operating since 1938 and last year it produced 43,415 oz of gold. Combined with the Mirado gold project in Kirkland Lake, Ont., it will give Golden Shield a production total of 61,750 oz by the close of fiscal l988.
The $38-million fee consists of $15 million cash; a $5-million 10% debenture secured by purchased assets that is convertible into common shares at $4.50 per share for five years; five million treasury common shares of Golden Shield and an option on three million shares at $5.00 per share exercisable for five years.
Preliminary approval to the acquisition has been given by the Vancouver Stock Exchange. Upon approval, Kerr Addison will have a 30% interest in Golden Shield while a 20% interest in the company also goes to Consolidated TVX Mining Corp. of Toronto.
Golden Shield retains a 10% block.
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