Minority shareholders of Stikine Resources will have the opportunity in early 1992 to tender their shares to International Corona (TSE) in exchange for preferred shares of Corona at $70 per share. The offer is the first step in Corona’s plans to merge Stikine with Prime Resources Group (VSE).
Corona is the controlling shareholder of both Prime and Stikine, which own 50% each of the Eskay Creek polymetallic deposit north of Stewart, B.C. The offer follows an announcement in mid-December that Placer Dome (TSE) would not participate as a joint venturer in the development of the property (T.N.M., Dec. 23/91).
Placer currently has a 22% indirect interest in the Eskay Creek project held through its 44% interest in Stikine, a position which can be exchanged for the Corona preferred shares.
A provision of the agreement between Placer and Corona calls for Corona to try to complete a merger of Prime and Stikine before the end of September, 1992.
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