Armada merger with Nescor gets nod

Shareholders of Armada Gold (AAU-A) voted in favor of a merger with Robert Friedland’s private company, Nescor.

Friedland was elected co-chairman at Armada’s recent annual meeting, joining incumbent board members John Hopkins and Derek Fisher. Other new board members include Adolf Lundin, Marcus Randolph, Edward Mercaldo and Neil Salish.

Armada will continue after the merger as the parent company. However, its share capitalization will double upon completion, as the present values of Nescor and Armada are about equal.

Armada is developing the Baley gold project in the Chita region of southern Russia, a past-producer estimated to host 8.8 million oz. gold. Proposed is an open-pit operation that would produce 470,000 oz. annually at a cash cost of US$147 per oz.

Nescor, meanwhile, holds a 49% interest in a large Mongolian copper project.