Blackhawk bought out yipee!!:
biz.yahoo.com
Press Release Source: BLACK HAWK MINING INC.
Black Hawk Mining Inc. and Glencairn Gold Corporation to Create Central-American Gold Producer With Growth Potential
Monday June 30, 6:17 pm ET
TORONTO, ONTARIO--BLACK HAWK MINING INC. (TSX-BHK) ("Black Hawk") AND GLENCAIRN GOLD CORPORATION (TSXV-GLJ) ("Glencairn") announced today that they have agreed to combine the two companies on the basis of one share of Glencairn for every three shares of Black Hawk.
Under the terms of the proposed combination, Glencairn will issue approximately 47,285,029 common shares to Black Hawk shareholders. Glencairn currently has 21,084,167 common shares outstanding. The combined company will operate under the name Glencairn Gold Corporation and the current officers of Glencairn will continue as the management of the combined entity.
"This is a positive development for Black Hawk shareholders," said Garth MacRae, President of Black Hawk. "The management group at Glencairn has an excellent track record and will provide leadership in developing the Black Hawk assets along with the Bellavista property."
"The combination of these two companies creates a strong, Central-American-focused gold mining company with a producing mine, another project ready to build and an excellent portfolio of exploration targets," said Kerry Knoll, President and Chief Executive Officer of Glencairn. "Black Hawk's Limon Mine in Nicaragua will give Glencairn immediate cash flow, and our Bellavista project in Costa Rica will add to that when it begins operating."
Completion of the transaction is subject to certain conditions including, among other things, completion of due diligence by each party, the execution of a definitive agreement and receipt of all regulatory approvals and third party approvals and consents, including approval by the shareholders of each company and the approval of the Toronto Stock Exchange and the TSX Venture Exchange. Subject to the fulfillment of all conditions, the transaction is expected to be completed in the third quarter of 2003.
Description of Key Assets
Black Hawk's Limon Mine is expected to produce 53,000 ounces of gold in 2002, increasing to 60,000 ounces in 2004 and 67,000 ounces in 2005, at an average cash cost per ounce of US$207 over the three years. None of its current or future production is subject to forward sales or hedging commitments.
Limon has been in continuous operation since 1941, producing nearly three million ounces at an average grade of more than 9 grams of gold per tonne. The underground mining operation feeds a 1,000-tonne-per-day carbon-in-pulp milling facility constructed in 1995. At the end of 2002, Black Hawk reported 973,600 tonnes of proven and probable reserves with a grade of 6.2 g/t containing 194,000 ounces of gold. For further details of Black Hawk's mineral reserves and resources, please refer to the Black Hawk Annual Information Form dated May 30, 2003.
Glencairn owns a 100% interest in the Bellavista gold project in Costa Rica where it plans to begin construction of an open-pit, heap-leach gold mine once financing is arranged. Construction costs at Bellavista are estimated at US$27 million, not including working capital. Based on a feasibility study completed in 1999 by the previous owner, Bellavista is projected to produce an average of 60,000 ounces of gold per year over a mine life of 7.3 years at a cash operating cost, including royalties, of US$163 per ounce upon commencement of commercial production. All major permits necessary to begin construction have been obtained. For further details of Glencairn's Bellevista gold project and its reserves and resources, please refer to the Glencairn Annual Information Form dated May 16, 2003.
Both Limon and Bellavista offer excellent exploration opportunities. In the fall of 2003, a diamond drill program will commence in the Sta. Rosa-Uval area, located 3 kilometres south of the Limon Mill.
Combined Reserves and Resources (as at December 31, 2002)
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Project Category Tonnes Grams/Tonne Contained Oz
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Reserves
Bellavista Proven & Probable 11,239,661 1.54 555,072
Limon Proven & Probable 973,600 6.20 193,900
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Total Reserves 748,972
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Resources
Bellavista Measured 5,975,317 1.22 233,457
Bellavista Indicated 3,956,409 1.12 142,690
Limon Indicated 72,000 8.4 19,400
Other Nicaragua Indicated 775,400 8.2 205,300
Hoyle Township Indicated 668,700 9.7 218,900
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Total M + I 819,747
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Resources
Limon Inferred 918,800 7.4 217,200
Other Nicaragua Inferred 1,123,500 9.3 336,000
Hoyle Township Inferred 972,700 10.2 319,000
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Total Inferred 872,200
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Proposed Board of Directors
The proposed board of directors for the continuing company will consist of eight directors, four from each company:
- Colin K. Benner, President and Chief Executive Officer, Breakwater
Resources Ltd.
- Gordon F. Bub, Chairman, Black Hawk Mining Inc.
- Donald Charter, Chairman and Chief Executive Officer of Dundee
Securities Corporation, Executive Vice President of Dundee Wealth
Management and Dundee Bancorp Inc.
- John Kalmet, former President and Chief Operating Officer, Wheaton
River Minerals
- Kerry Knoll, President and Chief Executive Officer, Glencairn Gold
Corporation
- Patrick Mars, former President and Chief Executive Officer, Bunting
Warburg Inc.
- Ian McDonald, Chairman, Glencairn Gold Corporation
- and an eighth member to be designated by Black Hawk
BLACK HAWK MINING INC. is an international mining and exploration company that operates the Limon Mine in Nicaragua and holds prospective gold/silver exploration properties in Nicaragua and Canada. Black Hawk is listed on the Toronto Stock Exchange under the symbol BHK.
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Contact:
Garth A.C. MacRae
President and Chief Executive Officer
Phone: (416) 365-5657
info@bhkmining.com
or
Paul D. Caldwell |
