A proposed merger between Pegasus Gold (TSE) and CoCa Mines (NASDAQ) has collapsed because the “two companies were unable to agree on certain provisions relating to management of the merged company,” notes Pegasus.
Pegasus is one of the United States’ largest gold mining companies with 1987 production totalling 228,000 oz. CoCa is co-owner of a California heap leach operation which produced 4,600 oz gold in the first quarter. CoCa also owns 2,043,433 shares of Equity Silver Mines which is worth over $10 million.
When CoCa announced the merger several weeks ago, Thomas E. Congdon, chairman, said that CoCa management would “play an important role in development of the merged companies’ assets.” But management staff were reported to be very unhappy about their roles in the merged company which reportedly scuttled the deal.
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