Milagro and Geomaque to merge

Milagro Minerals (MLG-V) and Geomaque Explorations (GEO-T) have agreed to merge their operations.

Milagro shareholders will receive one Geomaque share for every four shares of Milagro held. On completion of the merger, the assets of Milagro and Geomaque will be operated by Geomaque’s management. No expansion of Geomaque’s board is planned.

Milagro’s principal asset is its wholly owned, 10,000-ha concession in northwestern Honduras. The concession hosts numerous gold and base metal targets, including the Vueltas del Rio gold deposit where minable reserves are estimated to exceed 250,000 oz. gold. The deposit also hosts a drill-indicated resource exceeding 500,000 oz.

James Brady, president of Milagro, says “Geomaque management’s proven operating, exploration and financial expertise will be invaluable in the rapid development of the Vueltas del Rio deposit.”

John Patterson, president of Geomaque, says the agreement will help his company expand its international presence by enabling it to add another open-pit, heap-leach operation to its portfolio.

Geomaque currently produces more than 40,000 oz. per year at its San Francisco heap-leach project in Mexico’s Sonora state.