Willingdon and Sandy K negotiate merger terms

Willingdon Resources (CDN) has reached an agreement in principle to merge with Sandy K mines, a private company.

Sandy K’s main asset is a high-grade silver and cobalt property in the Gowganda area of northeastern Ontario.

If the merger goes ahead, Willingdon will acquire the right to a joint venture with Vancouver-based Consolidated Silver Standard Mines, which has proposed a $5-million program to bring the Sandy K into production. Subject to financing, Willingdon would assume responsibility for underground development work, including ramping.

Willingdon says the property has a recoverable mineral inventory of more than three million ounces of silver. It is adjacent to two former mines: Agnico-Eagle Mines’ (TSE) Castle mine and the Miller Lake O’Brien mine, which collectively produced about 60 million oz. silver during 1910-1989. The agreement is subject to appropriate valuations as well as shareholder, board and regulatory approval.