Goldex shareholders approve merger

Shareholders of Goldex Mines (TSE) have approved an amalgamation with a wholly owned subsidiary of Agnico-Eagle Mines (TSE).

Agnico, which already owns 53.7% of Goldex, will acquire the remaining 46.3% interest. Goldex shareholders other than Agnico will receive 0.36 common shares of Agnico for one common share of Goldex.

The merger is intended to enable exploration and development of the Goldex Extension property near Val d’Or, Que.

At a special meeting in Toronto, Agnico President Paul Penna said: “This is a situation in which everybody wins. Goldex shareholders will benefit from Agnico-Eagle’s ability to raise the money needed to develop the Goldex Extension, and Agnico shareholders will benefit from the acquisition of the deposit.”

Walter Hubacheck, geological consultant for Agnico, outlined an $18-million plan for exploring the Extension over two years.

Beginning in April or May, the depth of the shaft will be extended to 2,500 ft. from 1,500 ft. This will be followed by drifting on the 2,400-ft. level and drilling to define reserves and test mineralization at depth. A large bulk sample will then be extracted.

Also outlined were plans for building a 2,000-ton-per-day mill. Estimated cost: $35 million.

Current reserves are 25 million tons grading 0.073 oz. gold per ton, including 5.5 million tons grading 0.13 oz.

Results from exploration at Agnico’s LaRonde mine, 35 miles west of Val d’Or, were also discussed. Agnico is deepening the No. 1 shaft, and sinking the No. 2 to 5,000 ft. To date, seven lenses have been discovered at LaRonde. The No. 2 shaft will be used to explore the 6-, 7- and 20-north and 20-south zones. Also, drilling has identified two new areas, known as the 18 and 19, which will continue to be drilled.