Waddy Lake and Golden Rule agree on merger terms

The boards of directors of Waddy Lake Resources (TSE) and Golden Rule Resources (TSE) have agreed on a share exchange that will see the two companies merge.

Golden Rule, through its wholly owned unit GR Capital, now owns about 54% of the outstanding shares of Waddy Lake. Minority shareholders are being offered 0.53 of a share of Golden Rule for every share of Waddy Lake. Committees of the two boards obtained an independent evaluation of both companies, and the exchange rate of 53% was based on the market values calculated in the report.

The terms are subject to approval by the shareholders and by regulatory bodies.

Both boards of directors were optimistic that the merger would help accelerate development of the Komis gold property, about 150 km northeast of La Ronge, Sask. Waddy Lake submitted an Environmental Impact Statement to Saskatchewan’s Ministry of Environment and Resource Management on Aug. 25, to obtain approval for mine construction and licensing.

Waddy Lake says the report was well received by the Ministry and expects little difficulty in clearing the regulatory hurdles in two to three months. Work is now planned on the project that will allow preproduction development to get under way as soon as the province issues a formal approval.