Northgate, Whim do share swap

Northgate Exploration (TSE) has agreed to exchange its 3.8 million shares of Westfield Minerals (TSE) and 3.32 million options to purchase Westfield shares for an equal number of shares and options of Whim Creek Consolidated (TSE).

The share swap is the first step in a reorganization plan designed to simplify Northgate’s corporate structure, the company says. Before the swap, Northgate held a 26% interest in Westfield whereas Whim Creek owned a 21% interest. After the swap, Whim will hold a 47% interest in Westfield with Northgate holding a 15.4% interest in Whim Creek on a fully diluted basis.

Whim Creek is an Australian- based gold producer which mined 44,100 oz of gold in 1987. By 1989, Whim is expected to produce more than 160,000 oz of gold, Northgate says.