Proposal to merge Canamax, Minerex, Canada Tungsten under

A proposal is being reviewed by the boards of Canamax Resources (TSE), Canada Tungsten Mining (TSE) and Minerex Resources (TSE) to merge and create a larger, ongoing company known as Canada Tungsten.

Assuming all goes as planned, the merged entity would have a 50% interest in the Aurora Partnership gold mine in Nevada, a 100% interest in one of the largest tungsten mine and concentrating facilities in the Western World, and a 100% interest in the largest undeveloped tungsten property known today. Canada Tungsten would also have an interest in Canadian exploration and development projects, as well as $11 million in working capital and $160 million in Canadian tax pools.

The merger terms being considered would result in Canamax shareholders receiving 0.2 shares of Canada Tungsten for each share held. Minerex shareholders would receive 0.5 shares while Canada Tungsten Mining shareholders would receive one share for each share held.

Special committees of each board will review the proposal and finalize definitive terms, subject to receipt of a favorable fairness opinion from an investment adviser. The proposal is also subject to board, regulatory and shareholder approvals.

The merger would bring a final chapter to the corporate history of Canamax, which in 1987 reached a high of more than $14 per share, based on ambitious plans to develop a number of new gold mines in Canada.

The mines did not live up to expectations, however, and Canamax came to epitomize the boom-to-bust cycle that many junior mining companies experienced during the late 1980s.