Canuc and Nova Beaucage Propose Amalgamation.TORONTO--(BUSINESS WIRE)--Oct. 9, 1996-- CANUC(CANADIAN DEALING NETWORK Canadian Dealing Network (CDN) The organized OTC market of Canada. Formerly known as the Canadian Over-the-Counter Automated Trading System (COATS), the CDN became a subsidiary of the Toronto Stock Exchange in 1991. CANC CANC Cancelled CANC Cairo Air Navigation Center CANC Catholic Apostolic National Church CANC Cambodian-American Network Coalition .) NOVA BEAUCAGE(CANADIAN DEALING NETWORK NBAR NBAR Network-Based Application Recognition (Cisco) NBAR National Bureau of Asian Research NBAR Nonbinding Allocation of Responsibility NBAR Non Binding Preliminary Allocation of Responsibility .) Canuc Resources Corporation ("Canuc") and Nova Beaucage Resources Limited ("Nova Beaucage") jointly announced today that an amalgamation amalgamation /amal·ga·ma·tion/ (ah-mal´gah-ma´shun) trituration (3). amalgamation ( of the two companies has been approved by the board of directors of each company in the ratio of 1 common share of Canuc to 3.65 common shares of Nova Beaucage, based on an independent evaluation of each company by Sprott Securities Ltd. This proposed amalgamation will be presented to the shareholders of each company for approval and also will be subject to appropriate regulatory authorization. Each of Canuc and Nova Beaucage is exercising an option to acquire 30 percent, for a total of 60 percent, of the shares of Minera Andes Dorado S dorado: see dolphin (fish). .A. ("Andos") which company owns the Gold Star Mine in the Nambija area of Ecuador. An additional option, if exercised, would bring the ownership of Andos to 60 percent by Canuc and 40 percent by Nova Beaucage. Based on a recent calculation by Canuc's contract geologist, there is a potential geological resource of 8,684,000 tonnes with an average grade of 7.9 grams or 0.25 ounces per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. , giving a resource potential of 2.2 million ounces of gold, in the Gold Star Mine workings. These workings account for a very small fraction of the total contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. area in which Canuc and Nova Beaucage are acquiring their interests. Meanwhile, Andos is aggressively acquiring additional mineral rights in the area. The recommendation to amalgamate the two companies by the directors of each company is based primarily on the reduction of expense and increase in efficiency to be achieved with one company, only, operating the Ecuadorian project in which both Canuc and Nova Beaucage currently hold interests. At the same time, the consolidation of the joint interests of these two companies in this project provides a greater force for possible future joint ventures with third party mining companies. Finally, the scope of this project may require greater access to capital markets plus a larger management and operating organization than either company, individually, may be able to provide. Both companies have other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. including Canuc's recently acquired option to earn a 51 percent interest in a former producing gold-silver mine in the Leadville area of Colorado. This Leadville property has a history of profitable production and represents an exceptional exploration opportunity. The Leadville interest and all other assets were taken into account in the independent evaluation. A Special Meeting of Shareholders will be called as soon as possible by Canuc and Nova Beaucage to consider and, if deemed appropriate, to approve the proposed amalgamation of the two companies. CONTACT: Canuc Resources Corporation H.J Mockler, 416/861-1422 416/861-1478 (FAX) |
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