Four companies to form CanGold

Four related companies plan to amalgamate under the name CanGold Resources.

The four are Hughes Lang (VSE), Orofino Resources (TSE), Nova-Cogesco Resources (TSE) and Equity Reserve (TSE).

Under the plan, one Hughes Lang A share will be exchangeable for one CanGold share; one Hughes Lang B share will be exchangeable for one CanGold; and 12 Orofino shares will be exchangeable for one CanGold.

Also, five Nova-Cogesco shares will be exchangeable for two CanGold shares; three Equity Reserve shares will be exchangeable for five CanGold; and one Equity Reserve A preferred share will be exchangeable for one CanGold A preferred share, which will be convertible into five shares of CanGold. The merger has yet to be approved by regulators and shareholders. The latter will meet Dec. 29 to do so.

Meanwhile, directors from each company are meeting to evaluate the proposal, and First Marathon Securities is evaluating the four companies. CanGold’s working capital will be $2 million and it will manage securities worth more than $9 million in total.