Merger proposed for 2 companies

The directors of Golden Rule Resources and Goldsil Resources are recommending to their shareholders that the two companies merge.

The amalgamated company will issue each shareholder of Golden Rule 1.5 shares and one warrant (two-year term). For $3.10 and two warrants, a shareholder will be able to purchase one additional share of the amalgamated company.

Each shareholder of Goldsil will be issued one share and one-half warrant (two-year term). For $3.10 and two warrants, a shareholder will be entitled to one additional share of the amalgamated company.

Serving on the board of directors of the amalgamated company will be Ned Goodman, Peter Brown, Donald Busby, Nick DeMare, Larry Lahusen and Glen Harper.

The proposed amalgamation, subject to regulatory approval, will effectively give the new company up to an 80% interest in all of the LaRonge Gold Belt properties held separately by Golden Rule and Goldsil. Key Saskatchewan properties in the deal are the Tower East deposit and Blindman project, which will be 80% owned by the new company.

Other properties involved include the Weedy and Wedge Lake deposits in Saskatchewan and the Mets deposit in the Toodoggone gold camp in B.C. The new company will also have substantial interests in Mahogany Minerals Resources, Manson Creek Resources and Northern Abitibi Mining.

According to a Golden Rule spokesman, the new company will concentrate on bringing the Tower East deposit into production. Other area ore deposits could serve as additional mill feed.