NEWS ROUNDUP — Giant Bay drops Montanore

Unable to meet certain conditions of a merger agreement with Montana Reserves, Giant Bay Resources (TSE) has opted to pull out.

Montana Reserves holds a 5% net proceeds royalty on the Montanore copper-silver project in northwestern Montana. It can convert this to a 45% working interest by paying the owner, Noranda (TSE), US$26.8 million (plus interest) by June 30.

The merger was to have taken the form of a reverse takeover, with Giant Bay shareholders retaining 13% of the new company and Montana Reserves the balance.

The main obstacle to merging was the inability to obtain approval from the Toronto Stock Exchange before the deadline of Feb. 28.

Giant Bay has 20 million shares outstanding and $1.2 million in working capital.