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