Toronto-based Wilco Mining and a private company called Deak Ariadne Ltd. have agreed to combine their respective mineral exploration and financial expertise under one company, Wilco announced recently.
Deak Ariadne, which already holds 25% of Wilco’s outstanding shares, is a wholly-owned subsidiary of foreign exchange dealer and precious metals marketer, Deak International Ltd.
The new entity is expected to be called Deak International Resources, Wilco says. When the proposed amalgamation is complete, approximately $1.35 million owed by Wilco to Deak will be cancelled.
Under the agreement, Wilco shareholders are entitled to a 1- for-5 share exchange while Deak Adridne shareholders can receive 22 Deak Resource shares for each 17 shares currently held.
As a result, Deak International will hold about 82% of the amalgamated company’s common shares.
In addition to the $1.35 million owed by Wilco, Deak Ariadne, holds cash and mining related assets valued at $11 million. Wilco has varying interests in five mineral exploration projects located in Ontario, Quebec and Nova Scotia.
They include a 40% interest in 243 unpatented mineral claims in the Upper Shebandowan Lake area 60 miles west of Thunder Bay, Ont. In a joint venture arrangement, Minnova Inc. has the right to earn a 60% interest by contributing to $1.25 million in exploration costs.
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