The special committee of independent directors of Prime Resources Group (PUG-T), established to consider Homestake Mining’s (HM-N) bid for the 49.4% of Prime it doesn’t already own, has retained the services of geological and mining consulting firm Roscoe Postle.
Acting as technical advisor, Roscoe will assist the special committee and RBC Dominion Securities, Prime’s financial advisors, in providing an independent evaluation of the offer before beginning negotiations with Homestake. Homestake has offered 0.675 of a share for each share of Prime held by minority shareholders.
Part of Roscoe’s mandate will be to conduct an audit of gold reserves at the Eskay Creek mine. It will review and make comments on the database, geological interpretation, methodology and procedures used to estimate the amount and classification of reserves. Roscoe will also conduct independent estimates on parts of the Eskay Creek deposit using a different method and compare those estimates with the tonnage and grade of the deposit already mined.
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