Newhawk to merge with Silver Standard

Silver Standard Resources (SSO-V) has agreed to acquire all the outstanding shares of Newhawk Gold Mines (NHG-T).

Shareholders in Newhawk will receive one share of Silver Standard for every six shares held. The arrangement is subject to due diligence and approval by Newhawk’s shareholders.

Newhawk currently has $2.4 million in working capital and holds a 60% interest in the Sulphurets-Bruceside gold-silver property in the historic Stewart mining camp of northwestern British Columbia. Exploration in the 1980s and early 1990s defined a geological reserve, in the West zone, of 826,000 tons grading 0.45 oz. gold and 18.8 oz. silver per ton. An additional geological resource of 200,000 tons grading 0.57 oz. gold and 3.95 oz.

silver is contained in five other satellite zones. Black Hawk Mining (bhk-t) owns the remaining 40% interest in the property.

Newhawk also maintains a 100% interest in the adjacent Snowfield property, which covers a lower-grade gold resource of 7.7 million tons grading 0.083 oz.

Newhawk says the proposed transaction will give its shareholders increased liquidity and exposure to Silver Standard’s portfolio of silver-dominated projects, including the wholly owned Bowdens project in Australia, the

Manantial Espejo project in Argentina, in which the company has a 40% option, and the smaller El Asiento project under option in Bolivia.

On completion of the transaction, Silver Standard will have 19.7 million shares outstanding and $3.4 million in working capital.

Print

Be the first to comment on "Newhawk to merge with Silver Standard"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close