Plexus, CMP agree to merger plans

The boards of CMP Resources (VSE), Plexus Resources (TSE) and a numbered Ontario company have agreed to amalgamate.

The 3-way merger will result in a new gold-oriented company, Kinross Gold, which will be owned 25.3% by Toronto-based Dundee Bancorp (TSE) and 17.2% by Placer Dome (TSE). (Placer’s interest reflects an earlier involvement in the QR gold deposit, near Quesnel, B.C., now owned by CMP.)

Plexus has projects in the U.S., including a 24% interest in the Denton-Rawhide mine in Nevada.

Kinross will own the QR deposit, which recently received a mine development certificate. Minable reserves are estimated at 1.3 million tonnes grading 4.77 grams gold per tonne (1.4 million tons at 0.14 oz. per ton). The project could be brought to production after eight months of construction.