Halex, William plan merger to explore base metal properties

An amalgamation is being planned between Rouyn-Noranda-based Halex Resources (ME) and William Resources, a company whose shares are not listed on any stock exchange. William Resources has interests in five exploration properties in Quebec, and has nearly 1.3 million shares issued to 22 shareholders.

The proposed merger, subject to regulatory and shareholder approval, would see Halex shareholders receive one share in the new company in exchange for 4.77 old shares, while William shareholders would get one new share for each 1.29 old shares held. After the merger, shareholders of Halex would own 52.95% of the new company with the shareholders of William owning the remaining 47.05%.

The directors of the new company plan to finance exploration work on their Montgay and Woman River properties, which contain known polymetallic deposits. The Montgay property is in the Senneterre area and hosts preliminary reserves estimated at 193,780 tonnes grading 3.4% zinc and 56.8 grams silver per tonne.

Other properties held by William Resources are in Vauquelin Twp., east of the Aur-Louvem base metal discovery, and in Dussieux Twp., east of Matagami. The company’s Pershing property adjoins the Croinor gold deposit and its Isle- Dieu property is in the Matagami mining camp. The latter is described as being at a preliminary stage of exploration.

President Laurent Halle said he has approached several brokerage firms in order to discuss financing arrangements for exploration work on the new company’s properties.