FEK then GNN then GMI - now we have a second reverse takeover after a roll back - Welcome to the Canadian Mining sector - Glenhaven has been kind to me - I still have about xxk after rollback in various accounts
Glenhaven Minerals Inc -
Glenhaven to complete reverse
takeover with Miranda
Glenhaven Minerals Inc
GMI
Shares issued 0
2000-03-14 close $0.13
Thursday Mar 16 2000
Mr. Donald McInnes reports
The company has negotiated terms under which a reverse takeover with
Mexican-based Miranda Mining Development Corp. (MMDC) will be
undertaken. MMDC is a private company that was formed in 1994 to explore,
develop and mine precious and base metal deposits in Mexico. MMDC owns and
operates the Nukay gold mine, has a 30-per-cent carried interest in the Los Filos
gold deposit and has a significant portfolio of exploration and advanced-stage
projects.
MMDC was founded by Enrique Miranda-Paz, a Mexican CPA and MBA
graduate from the Wharton School of Business with over 30 years experience in
the minerals industry. He is a former senior vice-president of Cia Minera de
Cananea and general manager -- metals, financial planning and new projects for
Gyrupo Penoles. Mr. Miranda has assembled a management team of bilingual
Mexican mining professionals who are advised by a multinational board of
directors and advisory board whose members include Thomas Allen, QC, of
Ogilvy Renault, David Fagan, chairman Western Exploration & Development
Ltd., Fransisco Romero-Luna, mining consultant, Richard O'C. Whittall and J.
Gordon Forbes of Dillon, Whittall, Gill & Co.
MMDC's flagship operations consist of the Nukay gold mine, the Los Filos
deposit and the Morelos Norte Reserve area located in Guerrero state equidistant
between Mexico City and Acapulco. The properties are centred in the newly
recognized Guerrero gold belt where recent exploration within the belt has
outlined gold resources exceeding eight million ounces. The two main deposits in
the gold belt are the Bermejal deposit (55 million tonnes grading 0.82 of a gram
per tonne) owned by Penoles and Newmont and the Los Filos deposit (55 million
tonnes grading 1.25 g/t) owned by Teck Corporation and MMDC.
Following its inception, MMDC consolidated and amassed an extensive land
position in the Guerrero gold belt and entered into a series of agreements with
Teck Corporation to explore and develop the Nukay, Los Filos, and Morelos
Norte properties. Upon Teck completing the earn-in requirements of the
agreements, MMDC will have interests ranging from 70 per cent to 28 per cent in
these properties. To date, Teck has expended over $20-million (U.S.) on behalf
of the joint venturers.
The Nukay property is currently in production and in 1999 produced 19,350
ounces of gold at a cash cost of $142 (U.S.) per ounce. At present, the mine is
being upgraded to expand annual production to 30,000 ounces; upgrading should
be completed by year-end. Production is from the Nukay and La Aguita open pits
and from two underground zones named Independencia and Subida where gold
grades are up to seven g/t.
MMDC has a carried 30-per-cent interest in the Los Filos property where Teck
has completed over 70,000 metres of drilling and has established a resource of 55
million tonnes grading 1.25 g/t gold. Teck is currently preparing a prefeasibility
study on the deposit.
At the 26,000-hectare Morelos Norte property, Teck is currently financing a
$885,000 (U.S.) exploration program that includes 4,000 metres of drilling in
three target areas. One area being developed is the El Limon zone that
encompasses two former producing mines known as the Palma de Cobre and
Victoria mines. Trenching within a 550-metre-by-150-metre area of exposed
skarn mineralization has returned values up to 48.1 metres of 5 g/t gold and 13 g/t
silver.
MMDC also owns a number of other base and precious metal properties at
various stages of exploration and development in Guerrero and Guanajuato state.
The most advanced of these properties is the Xichu silver-lead-zinc deposit where
previous production by Asarco from 1940 to 1957 consisted of three million
tonnes grading 250 g/t silver to 750 g/t silver, 3.5 per cent lead to 15 per cent
lead, 5 per cent to 12 per cent zinc and 2 per cent copper to 7 per cent copper.
Miranda has been successful in amassing a promising portfolio of properties in
Mexico. The company has built and operates the Nukay gold mine and together
with Teck Corp. continues to advance the Los Filos and Morelos Norte
properties. With its enviable property position, experienced Mexican officers and
directors, and knowledge of the innermost workings of the mining industry in
Mexico, Miranda has positioned itself to become the Mexican mining investment
of choice.
To effect the merger of GMI and MMDC the current 4,318,299 common shares
of GMI will be exchanged for 1,627,704 shares of the merged company. The
existing shareholders of Miranda will receive 46,520,350 common shares of the
new company. The merged company will be known as Miranda Mining and
Development Corporation.
The new company will have a board of directors composed of members from
both the boards of GMI and MMDC. Salman Partners Inc. of Vancouver, B.C.,
has agreed to sponsor the transaction. Salman has had a long-standing relationship
with MMDC having previously raised over $10.7-million for MMDC.
Completion of the transaction is subject to a number of conditions, including but
not limited to, exchange acceptance and disinterested shareholder approval. The
transaction cannot close until the required shareholder approval is obtained. There
can be no assurance that the transaction will be completed as proposed or at all. It
is anticipated that a shareholders meeting of GMI will be held no later than the end
of June.
(c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com
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