Merger proposed between MinVen and United Coin

Denver-based MinVen Gold (TSE) is set to acquire full ownership of the Golden Reward mine in South Dakota by merging with United Coin Mines (TSE).

MinVen holds 33% of the low-grade Black Hills heap leach mine which is expected to produce 60,000 oz. gold this year after freezing weather conditions hampered operations in 1990. The remaining 66% is held by United Coin.

Under the agreement, United Coin shareholders will receive one share of MinVen for every two United Coin shares issued and outstanding, should the merger go ahead.

In addition, MinVen will issue a warrant to purchase one additional common share of MinVen for every five shares of United Coin issued and outstanding. The warrants are exercisable at US$1 and will be exercisable for up to two years after the closing date of the proposed merger. The transaction will result in the issue of about seven million new MinVen gold shares. MinVen, which expects to produce 95,000 oz. gold this year, expects the merger with United Coin to add about 40,000 oz. to its production quota next year.

News of the merger proposal added about 9 cents recently to the MinVen issue which closed Sept. 10 at 60 cents in a 52-week range of 50 cents and $1.06. On the same day, United Coin traded at 30 cents in a range of 25 cents and $1.25.