Wiscan, Yamana to amalgamate

An amalgamation has been proposed involving Wiscan Resources (TSE) and Minera Yamana, a private Canadian company.

Under the plan, Wiscan shareholders will hold 10% of the combined company, with Yamana shareholders holding the balance.

In addition, Wiscan’s current assets will be transferred to a new company and Wiscan shareholders will receive all of the outstanding shares of that company.

Yamana is engaged in resource exploration in South America, primarily in Argentina. Through a wholly-owned Argentine subsidiary, Yamana has exploration rights to more than 3,000 sq. km in five Argentine provinces covering the following geologic environments:

* Andean Cordillera — porphyry and epithermal copper-gold prospects similar to those on the Chilean side of Cordillera;

* Central Patagonia — sedimentary oxide copper deposits with drill-indicated reserves of close to 400 million lb. of cathode copper;

* Southern Patagonia — epithermal gold prospects (Argentina’s first gold mine is under development in this region); and

* Tierra del Fuego — volcanogenic massive polymetallic sulphide prospects. The copper oxide project is the subject of a joint-venture agreement with a major international mining company which is obliged to spend US$2.5 million to advance the project to bankable feasibility. In addition, the major is committed to spend US$750,000 to earn a half interest in a major reserve area. The amalgamation has yet to be approved by regulators and shareholders, and due diligence reviews of each company are required.