Rockford, Ranger merger

Toronto-based Rockford Minerals (TSE) and Northern Ranger Minerals (ASE) recently gained shareholder approval for a plan to combine their assets into a new company called Rockford Minerals Inc. (TSE). Under the amalgamation, Rockford common, preferred and special shareholders can exchange their own shares for equivalent shares in the new company on a one-for-one basis.

Northern Ranger shareholders can also exchange their shares for shares in Rockford Inc. on a one- for-one and one-third basis. As a result, the amalgamated company will have 14.3 million issued common shares, 1.6 million special shares and five million issued and outstanding Class A preferred shares.

“We hold various interests in the same properties, so it made sense to combine the two companies,” President Joseph van Baastelaar told The Northern Miner.

With $300,000 in cash, Rockford will also retain a 21.5% stake in the Larder Lake project near Virginiatown, Ont., where Golden Shield Resources (TSE) (63.5%) and Northfield Minerals (ASE) (10%) are the joint venture partners. Rockford also holds a 10% stake in Northfield Minerals.

Located near the Kerr Addison mine, Larder Lake comprises three gold deposits. The largest is the Cheminis project where operator Golden Shield has identified three million tons of grade 0.17 oz gold per ton including a proven inventory of 450,000 tons grading 0.17 oz.

Golden Shield is focusing on two new zones — the North Carbonate and North West Carbonate — which have already been drilled from surface. The North Carbonate has been intersected from a depth of 500 ft to 2,700 ft, according to Rockford. Future production plans at Cheminis rest on the result of a bulk sample scheduled to be taken from the C and A zones.

Located two miles further east is the Barber Larder open pit operation where Rockford has been conducting bulk tests on a stockpile of about 77,300 tons of grade 0.12 oz on surface. Golden Shield is planning to operate the project at a rate of 300 tons per day using the Kerr Addison mill at Virginiatown.

At the Fernland project which is located about 2,000 ft west of Cheminis, 40,000 ft of diamond drilling has outlined a zone extending up-plunge eastward and down- plunge in a westerly direction to a depth of 500 ft. Indicated reserves at Fernland are 60,000 tons grading 0.16 oz.

If Rockford is successful in making a takeover bid for Tyranex Gold (COATS), its reward will be a stake in the Tyranite gold mine property near Gowganda, Ont. Partners Gunnar Gold (TSE) and Mill City Gold (ME) are earning a 50% combined interest in the Tyranex option to buy the 12-claim property.

To earn their interest in a property which contains drill-indicated reserves of about 500,000 tons of grade 0.2 oz., Gunnar and Mill City must spend $5 million on exploration and complete a feasibility study by August, 1990.