Kiena, Sigma approve merger with Placer

Shareholders of Kiena Gold Mines (TSE) and Sigma Mines (TSE) have approved merging with Placer Dome.

Sigma shareholders voted 94% in favor while Kiena shareholders voted 89% in favor at annual and special meetings held for each company in Quebec City. Placer Dome holds 56.7% of Kiena and 64.7% of Sigma, all of which it cast in favor of the amalgamation.

Some minority shareholders had asked the Ontario Securities Commission to prevent Placer Dome from voting its shares at the meetings, but the commission rejected that request. Judging by the final outcome, the amalgamation would have been approved even if Placer Dome had not cast its ballots.

The amalgamation with Kiena was to have taken effect June 16 while the amalgamation with Sigma is expected to take effect “prior to June 25,” says Placer Dome.

Under the terms of the amalgamation, holders of Kiena shares will receive 0.92 shares of Placer Dome for each Kiena share held while holders of Sigma will receive 0.97 shares of Placer Dome for each Sigma share held. Fractional shares will be settled with a cash payment.