Shareholders of Tenajon Resources (VSE) and Royal Scot Resources (VSE) will be meeting in mid-July to vote on a proposal to amalgamate the two juniors.
The share exchange ratio is on the basis of one share of the amalgamated company for each Tenajon share held, and 0.5 share of the new company for each Royal Scot share held.
The boards of directors of each company reviewed the terms of the proposed amalgamation and concluded it to be “fair and reasonable,” and in the best interest of shareholders of both companies. The merged company will be known as Tenajon Resources.
The primary reason for the amalgamation is to provide Tenajon with an additional source of reserves that could be processed at Westmin Resources’ Premier gold mill near Stewart, B.C.
Westmin is already mining and preparing to process reserves from Tenajon’s SB gold property, and was also involved in discussions with Royal Scot to process reserves from that company’s Summit Lake gold project.
This former producer (Scottie Gold) already has a small mill on site, but a company spokesman said the Westmin custom milling option is viewed as more economically attractive than refurbishing the existing mill facilities.
Be the first to comment on "Terms outlined for merger"