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Thursday, 23rd June 2005 (4222 views)

Romarco Minerals, Western Goldfields and US Gold are on the brink of a major merger deal that will see a large force created in the gold industry.<br/><br/>The three companies have entered into a binding agreement to combine forces and create an emerging, intermediate gold producer with a strong exploration project portfolio.<br/><br/>The largest share of the resulting company will belong to Western Goldfields shareholders at 42 per cent, whilst US Gold will own 38 per cent and Romarco 20 per cent.<br/><br/>As a combined company, the three producers hope to output at least 150,000 ounces of gold per year within 12 to 18 months of their merger, increasing to 200,000 plus ounces after consolidation.<br/><br/>"This transaction will propel the combined companies into the ranks of the plus-150,000 ounce-per-year domestic US gold producers by early 2007," said Diane Garrett, president and CEO of Romarco. <br/><br/>"Following the recent corporate activity amongst the mid-tier producers, there are few companies remaining of this size."<br/><br/>Mines such as the Mesquite Mine in Texas, currently owned by Western Goldfields; US Gold's Tonkin Springs Mine, and advanced exploration projects in both North and South America will be brought together under the merger.<img alt="track" src="http://directnews.dehavilland.co.uk/dn.gif?feedid=196&itemid=16002560"/>

 

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