A proposed merger between World Wide Minerals (WWS-T) and Kazakstan Goldfields (KGFC-C) will create the largest foreign-owned mining company in Kazakstan.
The surviving entity, World Wide Minerals, will continue to trade on the Toronto Stock Exchange.
World Wide’s main asset (held through its 95% owned subsidiary, KazUran) is the TGK uranium project, which produces up to 4.7 million lb. U3O8 per year.
A restructuring plan recently launched by the Toronto-based company is aimed at restoring the project’s former output.
Total reserves are estimated at 75 million tonnes grading 0.12% uranium, with minable reserves projected at 10 million tonnes of 0.35% to 0.4% uranium.
Meanwhile, Kazakstan Goldfields (KG) is reactivating three producing gold mines in the same region that hosts TGK. The mines have total proven and probable reserves of 8.5 million tonnes grading 5.8 grams gold per tonne.
Possible reserves are pegged at 3.6 million tonnes of 12.6 grams gold.
Each of the three mines is expected to yield 150,000 oz. gold next year at operating costs below US$250 per oz.
The proposed merger calls for World Wide to acquire from Central Asia Goldfields (CGZ-M) 7 million shares held by that company in KG. In return, World Wide will issue 6.6 million of its own shares to Central Asia Goldfields at a ratio of 0.95 World Wide share for each KG share.
Each shareholder of World Wide would continue to hold one share of World Wide for each share currently held. Each shareholder of KG will receive 0.95 of a World Wide share for each KG share held.
In a related transaction, World Wide agreed to buy Central Asia Goldfields’s 25% carried interest in Gold Pool for 4.7 million shares. Gold Pool is owned 75% by KG, of which it is the operating arm.
Gold Pool holds two licences to explore 13,500 sq. km in Kazakstan, including the westerly extension of a geological structure that hosts the multi-million-ounce Vasilkovskoye gold deposit.
World Wide says the merger will allow for economies-of-scale that will benefit the combined operations. A power station in the region, operated by World Wide, has the capacity to service the gold mines, as well as a gold refinery.
World Wide, which is also exploring in China, has tendered a bid to acquire a majority stake in the Vasilkovskoye deposit.
World Wide has 51.1 million outstanding shares, whereas KG has 32.1 million shares outstanding. An additional 35.2 million common shares will be issued by World Wide as a result of the transaction, raising to 86.3 million its total outstanding common shares.
World Wide agreed to make up to US$5 million available to KG by way of short-term bridge financing for Gold Pool. Both companies are negotiating production-related financings with third-party lenders.
did this merger ever happen? If so, what is the stock symbol. I have a stock certificate for Kazakstan Goldfields and need to find the value of my shares.