Tundra plans to join forces with Oneida, Golden Pond

Subject to regulatory approval, Tundra Gold Mines (VSE) plans to complete a merger with Oneida Resources (VSE) and Golden Pond Resources (VSE) to form a new company, TGO Resources.

The amalgamated company will have two key assets, a 50% interest in the Lamaque mine property at Val d’Or, Que., and a 20% interest in the Mexican Hat property in Arizona.

Tundra and Golden Pond each have a 25% interest in the Lamaque while Teck (TSE) owns the remaining 50%.

Reserves in all categories at Lamaque were last estimated at about 1.74 million tons grading 0.20 oz. gold per ton.

The property has been sitting dormant for some time. Frank Sullivan, a spokesman for the three companies, said there

are no immediate plans for Lamaque with gold prices at current levels. The Mexican Hat property is 20% owned by Oneida, with the balance belonging to Placer Dome (TSE).

Placer subsequently decided to sell its interest in the property, offering it to Oneida for US$3 million.

Oneida was unable to finance the purchase price but temporarily amended the option agreement to become operator of the property. Under the terms of the deal, Oneida was required to complete 20,000 ft. of drilling within eight months, but it failed to do so and had its interest diluted to 20%. Sullivan said the company is now looking at acquiring Placer’s interest. Oneida, Tundra and Golden Pond are not currently trading on the VSE because of a lack of corporate funds.

A fairness opinion will be prepared to determine merger ratios.