Armada Gold completes merger with Nescor Inc., acquires major Mongolian copper project.TORONTO--(BUSINESS WIRE)--July 9, 1996--ARMADA GOLD CORP. (Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). : AAU AAU abbr. Amateur Athletic Union .A) Armada An earlier brand name for laptop computers from Compaq. The line was noted for its quality and innovative features. Gold Corporation announced today that it has received the required court approval and its merger with Nescor Inc. is now complete. The merger gives Armada Gold combined reserves of 1.53 billion pounds of copper and 5.6 million ounces of gold. The copper is associated with the Erdenet Mine in Mongolia, considered to hold one of the world's largest copper deposits. Nescor Inc. held a 49 percent interest in the Erdmin SX/EW (solvent extraction/electrowinning) project. Armada now holds 49 percent of the copper leaching project. Plant construction is well advanced and initial production of eight million pounds of cathode copper a year is expected to begin in August. Consideration is being given to expand plant facilities, leading to production of 40 million to 80 million pounds per year. This would result in a production cost of less than (US)25 cents a pound, making Armada's Erdmin project one of the world's lowest-cost copper producers. Armada's major gold interest is Balgold, a project with reserves of eight million ounces near the town of Baley in southeast Russia. A bankable bank·a·ble adj. 1. Acceptable to or at a bank: bankable funds. 2. Guaranteed to bring profit: a bankable movie star. feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. for production of greater than 450,000 ounces a year is expected to be completed early in 1997. A Davy International pre-feasibility study indicated that production costs would average US$147 per ounce. Armada Gold holds a 69.3 percent interest in Balgold. Robert Friedland Robert Friedland (born 1951) is Deputy Chairman/Director of Ivanhoe Energy and Ivanhoe Mines, Inc.[1][2] He has had mining interests in the Venezuelan Amazon, Siberia, the Rocky Mountains, Zambia and the Atlantic coast of Southern Africa. Co-chairs Restructured Company -- Robert Friedland, chairman and president of Ivanhoe Capital Corporation, a company with extensive global interests, was elected co-chairman of Armada Gold Corporation at the company's special and annual general meeting. As co-chair, he joins John Hopkins, chairman of Armada prior to the merger with Nescor Inc. Neil Salsich, chairman/CEO of Nescor, joins the Armada board of directors. Dr. Derek Fisher Derek Lamar Fisher (born August 9 1974 in Little Rock, Arkansas) is an American professional basketball player with the Los Angeles Lakers. He was with the Utah Jazz but asked to be released from his contract to care for his 10-month-old daughter, who has cancer. remains president of Armada Gold. Other new members of the Armada board are Adolf Lundin, chairman of Argentina Gold Corp.; Marcus Randolf, president of First Dynasty Mines Ltd.; Edward Mercaldo, executive vice president and chief financial officer of Diamond Fields Resources Inc. Armada Gold Corporation is listed on the Alberta Stock Exchange under the trading symbol Trading symbol See: Ticker symbol AAU.A. Its U.S. SEC exemption designation is 12g3-2(b) 82-3965. Nescor Inc. shareholders will be advised over the next few weeks of the procedure for exchanging their present shares for shares in the merged company. The basis for exchange will be 1.978 Armada shares for each Nescor share. The Alberta Stock Exchange has neither approved nor disapproved of the contents of this press release. CONTACT: Armada Gold Corporation Ross Orr or Chris Cory, 416/777-0001 |
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