Trans-Dominion to acquire 48.3% of Doelcam

Trans-Dominion Energy Corp. (TSE) plans to acquire a 48.3% equity interest (3.8% voting) in Doelcam Mining, a private company controlled by Dennis MacLeod. The interest will be acquired in exchange for Trans-Dominion’s 32% interest in Moneta Porcupine Mines (TSE), a 13% stake in Bar Resources (VSE), 7.5% in Equinox Resources (TSE) and a cash payment of $1.3 million. Doelcam’s main assets include an 18.5% interest in The Albany Corp. (TSE), (the controlling shareholder of Trans-Dominion), a 48% interest in Santana Technology, 13.9% of Tarzan Gold (ASE) and 37.2% of Goldrock Resources (ASE). The company also holds varying interests in mineral exploration properties in Ontario, the Northwest Territories and Scotland.

The claims have been valued by Watts, Griffis and McOuat, a geological consulting firm, at $1.4 million greater than the value used in the transaction, Doelcam says. These properties include the 32,000-acre Dunvegan project in the N.W.T and 39,000 acres near Kapuskasing, Ont., in which the company holds a 25% interest.

Doelcam is also the largest claim holder in Scotland holding rights to one million acres of ground in the Highlands. Echo Bay Mines (TSE) has signed an agreement with Doelcam giving it the right to earn a 50% interest in the Scottish properties by spending $2 million on exploration and making payments of $200,000.

After the deal closes, both Trans- Dominion and Doelcam plan to form a new company called International Tailings Corp. ITC will hold the tailings assets of Doelcam. Trans-Dominion will fund acquisition and feasibility study costs up to a limit of $4 million during the next five years. This will be repaid back from 33% of any after tax profits generated by ITC.

In Quebec, the company has a tailings property hosting 54 million tons of dump material grading 0.023 oz gold per ton. Another property in the same province has reserves of 6.5 million tons with copper, zinc, silver and gold credits valued at $37 per ton. A third project is in Mexico. Tailings reserves exceed 80 million tons grading up to 2 oz silver and 0.01 oz gold per ton.