The companies — Caribbean Resources (VSE), Exmar Resources (VSE), and Mishibishu Resources (VSE) — will seek shareholder approval for the amalgamation at their respective annual meetings to be held next month.
Each of the trio currently holds a 33.3% interest in the 274-claim Pukaskwa River property, where Hemlo Gold Mines (TSE) has an option to earn a 51% interest by spending $5 million on exploration and making cash payments totalling $1.2 million over four years.
The property is situated at the western extremity of the 23-mile long Mishibishu gold belt, which hosts a number of gold deposits including the producing Magnacon gold mine.
Initial grab samples from a 1,150-ft long quartz vein system on the Pukaskwa property have yielded results as high as 1.2 oz gold per ton. Systematic channel sampling returned values of 0.48 oz across 3.8 ft. The vein is reported to be continuous but poorly exposed.
The upcoming shareholders meeting will consider changing the company’s name to Mishibishu Gold Corp., reflecting its key interests in the Mishibishu gold belt.
A fairness opinion received from Canarim Investment Corp. has recommended the new company issue a total of 9.75 million common shares to the amalgamating companies.
A total of 3,313,906 shares (33.99%) of the new company’s issued capital will be received by Exmar shareholders, while Caribbean shareholders will get three million shares (30.77%) and Mishibishu 2,686,094 shares (27.55%) of the new company.
Under the exchange formula, shareholders of Exmar will receive 0.5334 of a share in the new company for each old share held, while Caribbean and Mishibishu shareholders will get 0.4215 and 0.6268 shares respectively for each old share held.
Shareholder approvals will be sought at the annual meetings on Sept 25. The amalgamation is also subject to regulatory approval.
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