Quebec Cobalt, Arrowhead plan an amalgamation

Richard Evarts, president of Quebec Cobalt and Exploration and John McDougall, president of Arrowhead Gold Mines announce the proposed amalgamation of the two companies.

The amalgamation is subject to the approval of the shareholders of each of the two companies at special meetings to be held May 13, 1987.

If approved, the name of the amalgamated company would be Societe de cobalt et d’exploration du Quebec/Quebec Cobalt and Exploration.

The shareholders of Arrowhead would receive one share of the amalgamated corporation for 3.27 shares of Arrowhead and the shareholders of Quebec Cobalt would receive one share of the amalgamated corporation for one share of Quebec Cobalt.

Arrowhead is a public company and its shares are traded over the counter. Its principal assets are mining claims covering approximately 400 ha in the northeast corner of Joannes Twp. in the Abitibi district of northwestern Quebec.

Quebec Cobalt is a public company and its shares are traded on the Montreal Exchange. Its principal asset is an iron ore property in the Mt. Wright area of northern Quebec approximately 17 miles southwest of Labrador City.

The proposed amalgamation will combine the assets of the two companies and provide a broader and more diversified asset base and greater financial strength than the individual corporations, the two companies say.

In addition, the amalgamation will facilitate the financing of exploration and development activities, reduce administrative costs and eliminate conflict situations.

The shares of the amalgamated company will be listed on The Montreal Exchange provided it satisfies the requirements of the Exchange.