Jerome set to amalgamate with International Platinum

To ease its financial difficulties, Toronto-based explorer Jerome Gold Mines (ASE) says it has signed a letter of intent to amalgamate with privately owned International Platinum. Jerome, which held an option to acquire the former Jerome gold mine near Swayze, Ont., until the option expired last May, has been inactive during the past year.

International Platinum Mining (not to be confused with International Platinum (TSE)) holds a 100% stake in an Australian platinum project known as the “Laura property.”

Platinum’s interest consists of two “authority to permit applications” and an “exploration permit application.”

A report by an independent Australian consulting firm has recommended a $182,000 work program that it says should include area photo surveys, ground magnetic surveys, geological mapping and reverse circulation drilling.

International Platinum has $300,000 available to fund exploration on the Laura property and liabilities of $22,000 owed to the former owner of the property for recent exploration work.

Should the proposed amalgamation be approved by both regulatory authorities and shareholders of both companies, it is anticipated that former shareholders of Jerome will have 15% of the issued shares of the amalgamated company. Former shareholders of International Platinum would also have 85% of the issued shares of the new company.

However, no single person will hold more than 10% of the outstanding voting shares of the merged company whose board of directors will include Jerome President Charles McAlpine, Jerome director Gord Strasser and Bitech (ASE) President James Wade.

Completion of the amalgamation hinges on International Platinum providing Jerome with sufficient funds to pay off an $18,000 debt and finance the cost of the amalgamation.

A third party creditor owed $275,000 by Jerome has agreed to extend the payment deadline until March 31, 1992, and if the merger goes ahead, convert the debt into shares of the amalgamated company.