NEWS ROUNDUP — Bachelor, Espalau merger complete

Now that shareholders have approved the proposed merger of Bachelor Lake Gold Mines (ME) and Espalau Mining (ME), the former will become a wholly owned subsidiary of Espalau and will be known as Espalau Gold Mines.

Under the merger, 15 Bachelor shares will be exchangeable for one Espalau share.

Espalau has also acquired $2.5 million in debt held by Bachelor bondholders in return for the issuance of 1 million Espalau shares and 400,000 warrants. In addition, Espalau has acquired $5 million in debt owing to QSR (TSE), Bachelor’s major shareholder, through the issuance of a 5%, 4-year convertible debenture in the amount of $500,000.

Bachelor’s main asset is a past-producing gold mine and 500-ton-per-day mill in Desmaraisville, Que. Reserves are estimated at 650,000 tons grading 0.23 oz. per ton.