Deal between Atlas and MSV collapses

The recent change in management at MSV Resources (TSE) has spelled the end of a merger proposal between that company and Atlas (NYSE).

Andre Fortier, after replacing Mario Caron as MSV’s chief executive officer and chairman, cancelled merger negotiations with Atlas, a move Atlas considers a breach of their original agreement (T.N.M., March 11/96).

The merger would have created a major gold producing company, with an output of 200,000 oz. targeted by 1998. MSV owns several gold and copper-gold properties near Chibougamau, Que., and Atlas owns advanced-stage gold projects in the western U.S. It also holds a 27% interest in Granges (TSE).