Thunderwood, Joutel propose merger

Thunderwood Resources (THS-T) and Joutel Resources (JTL-T) have agreed in principle to merge their assets.

The proposed deal would see shareholders of each company receive one share of the merged company in exchange for six shares of either Thunderwood or Joutel.

In conjunction with the proposed merger, Aur Resources (AUR-T) has agreed to subscribe for $1-million worth of flow-through shares of the merged company at the market price of the shares. This transaction will provide exploration funds to ensure the merged company remains active in 1998 and 1999, and will be able to exercise Thunderwood’s current option to acquire from Aur a 30% interest in 45 base metal and gold properties in Manitoba and Saskatchewan.

Upon completion of the merger, and prior to Aur’s investment, the merged company will have about 22 million shares outstanding, 37% of which will be held by former Thunderwood shareholders and 63% by former Joutel shareholders.

Thunderwood President John Heslop will preside over the merged company, a name for which has yet to be determined.

Among Thunderwood’s chief gold exploration assets are:

* a 35% interest in the Owl Creek West gold property near Timmins, Ont., which holds an inferred resource of 327,230 tonnes grading 7.14 grams gold per tonne;

* the right to earn a 17.5% stake in the Vogel gold property, also near Timmins, which holds an inferred resource of 1.6 million tonnes grading 8.81 grams gold;

* A 100% interest in Pelletier Lake gold property near Rouyn-Noranda, Que., which holds an inferred resource of 490,100 tonnes grading 8.57 grams gold; and

* the aforementioned right to buy into Aur’s properties in Manitoba and Saskatchewan.

Joutel’s principal assets include the right to earn a half-interest in 13 gold and base metal properties in Cuba (including the Barita deposit, which hosts an inferred resource of 7.4 million tonnes grading 1.24 grams gold and 5.87 grams silver).

The company also owns the Joutel copper property, a past producer situated in northwestern Quebec, among other projects. Shareholders and regulators have yet to green-light the proposed merger.