Mutual, Golden Knight amend amalgamation

Terms for the proposed merger of Mutual Resources (VSE) and Golden Knight Resources (TSE) have been amended.

Mutual shareholders will now receive one Golden Knight common share plus one share purchase warrant for every 6.4 shares held. A total of four warrants will be necessary to buy one Golden Knight share, exercisable at $10 for a 12-month period. An extraordinary meeting for shareholders of Mutual is scheduled for Sept. 26.

Meanwhile, exploration efforts on Mutual’s projects in West Africa are ongoing. The Oda River concession in the Manso Nkwanta district of southwestern Ghana is just one of five concessions in the district that Mutual and its joint-venture partner, Australia-based Leo Shield Exploration, are exploring. Mutual holds an option to acquire an 85% interest in Oda River.

Select results from trenching carried out on the Abore North prospect at Oda River include: 59 ft. of 0.043 oz. gold per ton; 111.5 ft. of 0.13 oz; 72.1 ft. of 0.1 oz.; 131.1 ft. of 0.06 oz.; and 72.1 ft. of 0.054 oz.

All in all, 13 trenches totalling 3,325 ft. tested an oxidized zone of gold mineralization, which extends along a minimum strike length of 3,100 ft. Mutual reports that preliminary drilling of four short holes, designed to test the downdip extent of the mineralization, was hampered by poor core recovery. Further work is planned.

Adjoining the Oda River property to the north is the Bilpraw concession, in which a revised agreement will allow Mutual to vest a 55% interest from EQ Resources (CDN) by issuing 204,000 shares. Half of Mutual’s interest will be subject to its joint-venture agreement with Leo Shield.

Elsewhere in Ghana, drilling at the Tarkwa concession in the Pepe, Mantraim and Akontansi East areas has increased the defined surface resource to 179.5 million tons grading 0.042 oz. A prefeasibility study for an open-pit, heap-leach operation is under way, and extensive metallurgical testwork is being carried out.

Mutual holds a 5% interest in the 220-sq.-km concession, which includes existing underground mining operations. Owner Gold Field Ghana produced 39,769 oz. from 229,558 tons of ore milled for the year ended June 30. Underground proven and probable reserves stand at 669,000 tons grading 0.32 oz., and drilling continues to assess both underground and surface targets elsewhere on the property.

In the neighboring country of Burkina Faso, Mutual was granted a 4-year prospecting concession covering 400 sq. km in the Seguenega region of the Yatenga province. A comprehensive regional exploration program is planned to follow up several surface indications of gold mineralization.