New Kelore plans to amalgamate with Pan Orvana

Private Vancouver company Pan Orvana Resources has agreed in principle to amalgamate with Toronto-based New Kelore Mines (TSE).

Conditional on director, shareholder and regulatory approval, the merger would bring together the exploration expertise at Pan Orvana with about $200,000 in cash and royalties held by New Kelore Mines.

Under the proposal, Pan Orvana shareholders will receive one share of the amalgamated company for each share held, while New Kelore shareholders will receive one share of the amalgamated corporation for every 3.67 shares of New Kelore.

The chief asset of New Kelore, a 24% owned affiliate of RFC Resource Finance (TSE), is a 25% net profits interest in Goldpost Resources’ (TSE) Hislop Twp. gold mine in northern Ontario where production was suspended recently. A reporting issuer guided by President Neil Hillhouse, formerly of Placer Dome (TSE), Pan Orvana has amassed a basket of mostly grassroots exploration properties in Canada, U.S. and Chile. They include the 26-sq.-km Cobb Creek gold project on the northern end of the Independence range in Nevada and the Red Wedge joint venture with Noranda in Chile.

Toronto-based Rio Algom (TSE) is Pan Orvana’s largest shareholder with 21.8%.