No dissenters evident following Prime, Stikine, Corona marriage

In an unusual display of sweetness and light for a mining industry takeover, all key players are professing to be winners in the recently announced plan to merge Prime Resources Group (VSE) and Stikine Resources (TSE) into a new entity controlled and owned 44.6% by Corona (TSE). Corona President Peter Steen said he was “delighted” with the prospect of becoming more substantially involved in the “increasingly significant” Eskay Creek property near Stewart, B.C., which will be 100% owned by the new company. And he also expressed total support for Prime’s current management team.

“Corona’s technical and financial assistance will be available to assist the existing Prime management in the development of this major orebody,” he stated.

Corona spokesman Brian Hay told The Northern Miner that the new company would be based in Vancouver and be managed by existing directors of Prime including well known promoter and mine financier, Murray Pezim.

A separate company holding Prime’s existing portfolio of managed companies — dubbed “Son of Prime” by Pezim — will also be based in Vancouver with the highly successful Prime Explorations continuing to manage the various work programs.

Asked about Corona’s plans for the Eskay Creek project where a new mineralized zone was recently discovered, Hay said the “world class” project is still being operated by Prime.

“As Mr. Steen has stated, Corona has a great deal of confidence in the existing staff and management of Prime,” he added.

Ned Goodman, chairman of Corona and a director of Prime, also came out in support of Prime’s senior management after a recent meeting in Vancouver to review with legal counsel allegations of securities violations involving Pezim and associates John Ivany and Lawrence Page.

Goodman stated that senior management of Prime “acted honestly, prudently and in good faith throughout,” and he called the allegations “without merit.”

All this is different from the last time when Corona tied up control of a Pezim-backed mine project. That was in the heady days of the Hemlo gold discoveries when Goodman and associates wrested control of International Corona from a then cash-strapped Pezim. As a result of that fortuitous transaction, Corona ended up with a 50% interest in two rich producing gold mines at Hemlo, Ont.

Corona, which emerged as the largest single shareholder of Prime last summer, was rumored for some time to be a possible contender to buy Stikine’s stake in Eskay Creek.

A number of sources told The Northern Miner that a third-party offering to acquire Stikine had forced Corona’s hand to tie up control of Eskay Creek, but these reports could not be substantiated.

Stikine Chairman John Toffan appears to be happy with the transaction which he said maximizes the value for the Stikine shareholder.

“Everyone is a winner,” he stated.

The new company, as yet unnamed, will also hold a 40% interest in the Snip gold deposit being readied for production by Cominco (TSE) in the Iskut River camp, some 50 miles from Eskay Creek.