Wolfden readies gold spinoff (August 28, 2006)

Following shareholder approval late in June, Wolfden Resources (WLF-V, WFDNF-O) has spun off Premier Gold Mines (PG-T), the company that will hold Wolfden’s northwestern Ontario gold projects.

Premier then announced it was offering A31 per share for Australian explorer Sedimentary Holdings (Sed-A), a junior which also holds a 30% interest in the Cracow gold mine in Queensland, where Newcrest Mining (NCMGY-O, NCM-A) is the operator. Cracow produced 21,000 oz. in the quarter ended June 30.

Shareholders in Wolfden got one new Wolfden share plus 0.7 of a Premier share for each of their current Wolfden shares. Wolfden will continue to hold its projects in Arctic Canada while Premier will absorb the Bonanza and East Bay gold projects, both in the Red Lake area of Ontario. Premier, which will shortly resume drilling at Bonanza, is also staked with $2 million in startup cash from Wolfden.

Wolfden also closed the sale of its minority interest in the Monument Bay gold project in Manitoba to Rolling Rock Resources (RLL-V). Rolling Rock also took over the majority interest held by Bema Gold (BGO-T, BGO-N, BAU-L), which will hold about 30% of Rolling Rock’s shares while Wolfden will hold about 17%.