Companies consolidate interests in B.C. copper-gold project

The companies involved in the Kerr copper- gold property, Western Canadian Mining Corp. (VSE) and Sulphurets Gold Corp. (VSE), recently agreed in principle to consolidate their respective interests into one corporate entity; Sulphurets Gold Corp. Directors of both companies called the unification a “positive step” and Dale Wallster, president of Sulphurets Gold, adds that it will ultimately allow for “a quicker, more efficient” development of the deposit which is located about 65 miles north of Stewart, B.C.

To date, the joint venture spent about $2 million on exploration with work resulting in the discovery this year of a large tonnage, near surface porphyry copper/gold deposit open in three directions. Although substantial in-fill drilling is required to confirm the exact geometry and reserves, the companies inferred some 66 million tons with an average grade of 0.86% copper and 0.01 oz gold per ton.

Under the unification agreement (subject to all necessary approvals), Western will sell to Sulphurets its entire interest (70%) in the Kerr property in exchange for about 70% of the issued shares of Sulphurets. In addition, Western will acquire by way of private placement 222,222 common shares of Sulphurets to yield $100,000 to Sulphurets’ working capital.