Merger trend among juniors going strong

Vancouver – The industry trend of corporate mergers remains a common market theme with a growing number of junior resource companies seeing synergy through combination.

Yukon-focused uranium hunters Cash Minerals (CHX-V, CHXMF-O) and Signet Minerals (SGN-V, SGTMF-O) recently tabled plans whereby Cash would takeover Signet to become what it terms a “consolidator of uranium exploration companies.”

Under the plan of arrangement, Signet shareholders stand to receive one unit of Cash Minerals for each share held. Units will be comprised of 0.67 of a Cash shares plus one-half of a warrant with each full warrant exercisable at $1.75 for three years. Cash has locked-up a support agreement with shareholders representing about 21% of Signets outstanding shares.

As one of the larger landholders in the Yukons Wernecke Uranium District, Cash will boost its portfolio by incorporating Signets nearby Currie and Murphy properties.

The Wernecke area is the focus of a number of explorers evaluating the uranium potential of its iron-oxide copper-gold (IOCG), or Olympic Dam-type, prospects.

Signets non-uranium assets, gold and base metal projects in British Columbia and Manitoba, are proposed to be spun out into a new company to be held by current its shareholders.

Besides actively exploring its Wernecke Mountains area projects, Cash also recently entered an option to earn 51% of Cornerstone Capital Resources (CGP-V, CTNXF-O) Aillik uranium property in Labradors Central Mineral Belt. Additionally, Cash holds its Division Mountain coal project in the southwestern Yukon that underwent a scoping study in early 2005 and is evaluating development of Chinese coal projects.

Copper Canyon and Romios propose marriage

Copper Canyon Minerals (CPY-V, CAYRF-O) and Romios Gold Resources (RG-V, RMIOF-O) have drafted merger plans to combine its northwestern B.C. area copper and gold projects.

The proposed amalgamation would see business carry on under a new Romios Gold Resources with Copper Canyon shareholders receiving 1.5 shares in the new company for every one held and shareholders of the old Romios Gold swapping share-for-share for the new entity.

Copper Canyon would contribute its namesake project located adjacent to NovaGold Resources‘ (NG-T, NG-X) Galore Creek copper-gold deposit. NovaGold can earn an 80% interest in the Copper Canyon project for cash payments, share issuances and completion of a feasibility study on it by 2011. The project contains an inferred resource of 164.8 million tonnes of 0.35% copper, 0.54 gram gold per tonne and 7.2 grams silver per tonne using a 0.35% copper equivalent cut-off grade.

Romios has a land package of nine projects encompassing about 250 sq. km in the Galore Creek area that is adjacent to both NovaGolds and Copper Canyons projects. The company recently tabled an inferred resource estimate of 1.4 million tonnes grading 4.43 grams gold, 0.22% copper and 6.4 grams silver (using a 2 gram gold equivalent cut-off grade) on the Northwest zone at its Newmont Lake property.

About $3 million in exploration is earmarked for exploration of its Galore Creek area projects this year. The company also holds projects in Nevada and in Ontario.

Piper and Garson to unite

The Boards of both Piper Capital (PCL-V) and Garson Resources (GARR-C) have given a nod to an amalgamation of the companies.

The pair jointly owns the New Britannia gold mine in the Snow Lake region of northern Manitoba, 60% by Piper and 40% Garson. Ownership consolidation of the past producer is viewed as a step to expedite its proposed reactivation.

The planned combination, subject to regulatory and shareholder approvals, would see Piper shareholders exchange their shares on a one-to-one basis for shares in the new company while shareholders of Garson would get one new share for every 1.37931 shares held. The new company would tentatively be named Garson Gold.

New Britannia operated from 1949 to 1958 and again from 1995 through 2004 to produce a total of 1.43 million oz. gold. Measured and indicated resources stand at 2,211,000 tonnes at5.1 grams gold (about 364,000 contained oz.) plus an additional 1,094,000 inferred tonnes at 5 grams (about 176,000 contained oz.).