Espalau, Bachelor Lake directors OK merger

Amalgamation of Espalau Mining (ME) and Bachelor Lake Gold Mines (ME) has been approved by corporate directors.

They also approved the issuance of Espalau shares to Bachelor shareholders in the ratio of one share of the former for every 15 shares of the latter. In addition, Bachelor bondholders have authorized Espalau’s acquisition of their bonds in exchange for one million Espalau shares and 400,000 warrants. If the merger is approved by shareholders later this month, Bachelor will be renamed Espalau Gold Mines and will become a wholly owned subsidiary of Espalau.

Bachelor’s main asset is a past-producing gold mine and 500-ton-per-day mill in Desmaraisville, Que. Reserves are estimated at 650,000 tons grading 0.23 oz. gold per ton.

The merger reflects Espalau’s ever-increasing involvement in gold mining. Last year, it bought the Dona Lake mine, near Pickle Lake, Ont., from Placer Dome (TSE).