In concert with the previously announced combination of Pacific Sentinel Gold (VSE) and Big Creek Resources (VSE), a tentative agreement has been reached with Casino Silver Mines (VSE) to include it in the merger.
Pacific Sentinel and Big Creek recently received shareholder, exchange and court approval for a merger on a share-for-share basis and expect to close the amalgamation in the immediate future.
The agreement-in-principle with Casino Silver calls for the company to cancel all its outstanding shares and to become a wholly owned subsidiary of the newly merged company.
Pacific Sentinel, the surviving company, will issue Casino shareholders three units for every four Casino shares cancelled under the proposed deal. Each unit will consist of one common share of Pacific Sentinel plus one non-transferable share-purchase warrant exercisable until May 31, 1993, at $3 per share.
If completed, the transaction will effectively give Pacific Sentinel a 100% working interest in the Casino copper-gold deposit in the Yukon. Big Creek and Pacific Sentinel currently have an option to earn a 50% interest in the property by spending an aggregate of $7.5 million by May 1, 1998, and can acquire a 100% interest in the property by buying out Casino for $15 million.
Previous estimates, dating back to the early 1970s, put total reserves in the Casino deposit at about 170 million tons grading 0.37% copper and 0.039% molybdenum.
Gold was generally not assayed for at the time and subsequent drilling this summer in 21 holes returned wide intersection through three levels of porphyry copper-gold mineralization.
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