By April, Trader Resource (TSE) expects to have acquired Mountain Minerals, a diversified producer and marketer of industrial minerals.
The $8-million transaction is still subject to financing, more due diligence, and board and regulatory approvals.
Mountain Minerals is a private company with two barite divisions: one in North America which supplies the Western Canadian oil-patch, and a more recent joint venture in China. The Alberta-based company also has a silica and a zeolite division.
The acquisition would fulfil Trader’s objective to become an operating company. Revenues of Mountain Minerals are projected to double to about $20 million in the next five years, largely because of the recent barite joint venture in China and the entry into the zeolite business.
Trader plans to use the cash flow from the industrial minerals to expand this business and to develop gold exploration properties. Drilling is planned this year on the Mikwam property in Ontario, a joint venture with Hemlo Gold Mines (TSE).
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