At the current market price of Pegasus common stock, the transaction is valued at approximately $36.6 million(US), excluding the 35% interest in USMX that Pegasus already holds.
John Willson, president and chief executive officer of Pegasus, emphasized that the merger “will provide Pegasus with additional mining, and exploration talent, production, and reserves. Beyond that, the USMX transaction will give Pegasus access to a number of excellent properties that can be developed over the years.”
Michael Mehrtens, president of USMX, said his shareholders would now have access to “the increased potential for growth as shareholders in the stronger Pegasus that will result from the transaction.”
USMX currently owns one operating mine, the Green Springs project near Ely, Nev., and the company conducts an active exploration program in the Western United States. It is also involved in several joint ventures including the Casino- Winrock project with Pegasus and the Kinsley project with Cominco American Resources. USMX holds a 5% net profits interest in Pegasus’ Montana Tunnels mine which, after development and financing costs are recovered, will revert to a 50% net profits interest.
Pegasus operates five precious metals mines in the Western United States.
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