EXPLORATION ’94 — Gitennes, Kenrich and Ambergate announce

A proposal to merge Gitennes Exploration (ASE) with Kenrich Mining (VSE) and Ambergate Explorations (VSE) would provide the amalgamated company with a broad base of exploration properties in Canada.

The proposal calls for Ambergate and Kenrich to combine their land holdings in the Eskay Creek region of British Columbia with Gitennes’ portfolio of gold, diamond, wollastonite and base metal properties in the Northwest Territories and eastern Canada.

Gitennes President Jerry Blackwell said the merged company will aggressively explore Kenrich-Amergate’s 80,000-acre property near Eskay Creek. In 1993, significant mineralization and alteration were discovered in rock units correlative to the stratabound Eskay Creek gold-silver deposit, now being readied for production by Homestake Mining.

“These discoveries have superior gold potential and are untested by drilling,” Blackwell said. “We are very familiar with the Eskay Creek deposits and feel the camp has excellent potential for major new discoveries.” Gitennes has a wollastonite deposit in Ontario and exposure to gold, diamond and base metal properties in the Territories. These include a 25% interest in the Damoti Lake gold discovery (a joint venture with Athabaska Gold Resources) and a land package in the belt totaling more than 109,000 acres. The junior also has a joint venture with Aber Resources in the Point and Itchen Lake areas of the Territories, where exploration is focused on diamonds, base metals and gold.

Although the transaction is subject final agreements and the approval of regulators and shareholders, shareholders of each of the companies will nevertheless receive one share of the amalgamated company for each share held. The share capital structure is such that Gitennes shareholders will hold about 50% of the new company, while Ambergate and Kenrich shareholders will share the remainder.