Juniors complete merger

The proposed merger of Wheaton River Minerals (WRM-T) and Kit Resources is now complete.

Wheaton River shareholders received one share of the merged company for each Wheaton River share held; Kit shareholders received 0.408 share for each Kit share. The merged company, which retains the name Wheaton River Minerals, has about 52 million shares outstanding.

Kit shares ceased trading on the Toronto Stock Exchange on March 8.

Currently, Wheaton River’s only producing asset is its Golden Bear mine in northwestern British Columbia. The heap-leach gold mine is owned and operated by Vancouver-based North American Metals (NAM-V), which is 89%-held by Wheaton.

In 1999, Golden Bear produced 71,300 oz. gold at a total cash cost of US$162 per oz. The mine has two more years of profitable life.

Wheaton River’s second-most-advanced asset is its Bellavista heap-leach gold project in Costa Rica. At an anticipated construction cost of US$28.3 million, the operation is expected to produce 60,000 oz. annually over a 7-year mine life. Total cash and operating costs (including royalties) are pegged at US$179 per oz.

Wheaton also owns the Red Mountain gold project, near Stewart, B.C., which North American Metals purchased for C$413,000 from the interim receiver for now-defunct Royal Oak Mines. The property holds about 12 million tonnes of reserves grading 2.5 grams gold per tonne, and Wheaton River has established a higher-grade core of 700,000 tonnes averaging 12 grams gold.

Kit brings to the table its George Lake gold project, 70 km south of Bathurst Inlet in Nunavut. Indicated resources there stand at 4.2 million tonnes grading 9.8 grams gold, whereas inferred resources are pegged at 2.2 million tonnes grading 9.69 grams. The project is optioned to Kinross Gold (K-T), which can earn a 70% interest by spending $20 million by Nov. 30, 2004.