Zenda to buy Terex (October 04, 2004)

Toronto-based junior Zenda Capital (ZND-V) will be going ahead with its proposed acquisition of privately held Terex Resources, previously announced in July.

Zenda, which now has 16.7 million outstanding shares, will issue another 14.9 million shares to acquire 100% of Terex, which explores for base and precious metals.

Terex has two key assets in Ontario: the Massey copper-gold property in the Sudbury area, and the Mishibishu gold property in the Wawa area.

Situated 5 km northwest of the town of Massey and 85 km west of Sudbury, the Massey property is said have characteristics similar to iron ore-copper-gold deposits.

The property comprises 10 claims totalling 832 hectares, and contains the former producing Hermina 1 and 3 mines, as well as the Gutcher shaft and the adit zone of the Massey mine.

The Hermina deposits are 1.7 km apart and are believed to be localized along a splay fault to the Murray Fault, a major regional structure.

The Gutcher shaft and the Massey mine are contained within a large hematized, silicified, albitized and sericitized breccia complex adjacent to the Murray Fault.

The Mishibishu property consists of four claim blocks totalling 4,880 hectares in the Mishibishu greenstone belt.

Terex’s properties will add to Zenda’s existing portfolio of gold properties in the Red Lake and Kirkland Lake camps.

Zenda and Terex are completing their due diligence, and Zenda will hold a general and special meeting for shareholders to approve the deal on Nov. 8.

Once the acquisition is completed, Donald Hawke, a director and current president of Terex, will join Zenda’s board and become company president. Zenda’s current president, Paul Ankcorn, will become Zenda’s new chief financial officer.