Junior Lago Resources (LAGO-C) and RUX Resources, a private company owned 63% by William Resources (WLM-T), have agreed to merge.
William will hold a 56% stake in the new company, which will have an initial cash flow of $3.1 million.
RUX’s current shareholders will hold a 90% interest in the new company, with Lago shareholders holding the remaining 10%. The new company, which has yet to be named, will hold interests in the Russian Far East and Uzbekistan, where RUX is developing two high-grade gold mines, the Shkolnoye and Kayragach.
RUX has also begun negotiations for the acquisition of 50% of Nelkobazoloto, the Russian company that holds the rights to mine the Skholnoye deposit. That deposit, which is expected to produce 66,000 oz. gold per year by mid-1997, is in the Magadan region of the Russian Far East. It hosts 750,000 tonnes grading 14 grams gold per tonne.
In addition, RUX has signed an agreement with the government of Uzbekistan whereby the company can acquire a 49% interest in an Uzbekistani joint-venture company with the right to mine several high-grade precious metal deposits southeast of Tashkent. The most advanced project is the Kayragach gold mine, which is in a 2,500-ha licence area containing five known gold occurrences.
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