Subject to shareholder and other approvals, Santa Cruz Gold (SCG-T) and Newmex Mining (MEX-T) will amalgamate to form a new company to carry on business as Santa Cruz Gold.
The proposed transaction calls for each Santa Cruz share to be exchanged for one share of the new company, while Newmex shareholders will be entitled to 2.2 shares of the new company for each Newmex share.
Once the merger is complete, the board will seek a new president and chief executive officer.
The merged company will own the Lluvia de Oro gold mine in Mexico, which is expected to turn out 25,000 oz. gold this year. Santa Cruz’s Magistral gold project is expected to begin construction this year, with startup scheduled for early 1998. In addition to these two mines, Santa Cruz will have three advanced-stage exploration projects in Mexico.
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