Shareholders okay Northern Empire, Stornoway merger

Shareholders of Northern Empire Minerals (NEM-V) and Stornoway Ventures (SWV-V) have overwhelmingly approved the pair’s proposed merger.

Under the deal, Stornoway shareholders will receive 0.8734 of a Northern Empire share for each share held.

Subject to court and regulatory approval, the duo plan to wrap up the transaction on July 16.

Stornoway CEO Eira Thomas will become CEO of the combined company on completion of the plan of arrangement and be responsible for its operations. John Robins, president of Northern Empire, and Stornoway President Catherine McLeod-Seltzer will be co-chairmen.

Key to the deal is the consolidation of each company’s 35% interests in the Aviat joint venture and the promising AV-1 kimberlite discovery. In all, the merged company will control more than 44,500 sq. km of prospective properties in the Melville Peninsula, Rankin Inlet and Coronation Gulf regions of Nunavut, and the Otish Mountains of Quebec.

Northern Empire and Stornoway are each earning a 35% interest in the Aviat properties from the Hunter Exploration Group by spending a total of $2 million on exploration before Oct. 1, 2005.

Hunter has agreed to sell a 20% participating interest in Aviat to BHP Billiton Diamonds for $7.1 million. The deal would see Hunter surrender diamond-marketing rights to the 10% carried interest it will retain.

Northern Empire and Stornoway are both part of the Northair Group.