Shareholders of Calpine Resources (VSE) will soon have a second fairness opinion on the proposed merger between Calpine and Prime Resources (VSE).
Calpine management retained Levesque Beaubien Geoffrion, an investment firm, to determine whether the terms of the proposed merger are fair and reasonable from a financial view to the shareholders of the company other than Prime.
Prime currently is the largest single shareholder of Calpine, holding about a 45% interest. A copy of the new fairness opinion will be made available to both companies’ shareholders.
The outcome will interest Corona (TSE) which recently acquired a further 1.45 million common shares and 0.5 million warrants of Prime. These transactions have increased Corona’s ownership to 28.2%, or 33.1% fully diluted.
Calpine’s key asset is a 50% interest in the Eskay Creek project, north of Stewart, B.C. A drill program is under way on the property, focused on 21 zone discovery.
Assays for precious metals were released for 14 drill holes completed on the 21 zone. Values for lead, zinc and copper are still pending. Holes 153B and 181 returned no significant results. Four holes were also completed on targets outside the 21 zone. Hole 05 returned 9.5 ft. of 0.05 oz. gold per ton and 2.54 oz. silver and hole 07 returned 6.6 ft. of 0.05 oz. gold and 1.7 oz. silver. Holes 04 and 06 returned no significant results.
Holes 153B and 181 returned no significant results. Four holes were also completed on targets outside the 21 zone. Hole 05 returned 9.5 ft. of 0.05 oz. gold per ton and 2.54 oz. silver and hole 07 returned 6.6 ft. of 0.05 oz. gold and 1.7 oz. silver. Holes 04 and 06 returned no significant results. metric ft.ft.oz./tonoz./ton HoleSectionIntervalLengthGoldSilver (uncut)(uncut) 1695+50N298.5-334.536.05.93191.75 incl. 301.8-328.026.28.12251.89 1705+50N314.9-354.239.32.28 91.03 incl. 337.8-350.913.16.31264.25 1716+00N196.8-223.026.20.03 0.09 1726+00N213.2-242.729.50.15 2.35 incl. 213.2-219.8 6.60.45 7.10 1735+50N485.4-495.2 9.80.07 0.17 1745 –50N590.4-593.7 3.30.08 0.05 1756+00N 98.4-105.0 6.60.21 17.35 1766+00N008.2-121.413.20.10 4.10 213.2-229.616.41.12 61.40 1774+50N436.2-505.168.90.14 3.11 1784+50N465.8-508.442.60.16 0.07 1794+50N583.8-606.823.00.23 0.34 1806+00N186.9-190.2 3.30.06 2.40
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