Merger planned
Pacific Sentinel Gold Corp PSG
Shares issued 23,697,062 Nov 13 close $0.36
Mon 17 Nov 97 News Release
Also Consolidated North Coast Industries Ltd (KNH)
Mr Robert Hunter reports
Pacific Sentinel Gold and Consolidated North Coast Industries have executed
an agreement dated November 14 1997 whereby they will merge into a single
company to be named Great Basin Gold Ltd pursuant to a statutory plan of
arrangement under the BC Company Act. The terms of the arrangement provide
that Pacific Sentinel shareholders will receive one share of the successor
company, Great Basin, for each five Pacific Sentinel shares, and North
Coast shareholders will receive one Great Basin share for each 1.6 North
Coast shares. On completion of the merger Great Basin will have
approximately 12.9 million outstanding shares (16.0 million fully diluted)
inclusive of 750,000 escrow shares. Management of Great Basin will own
approximately 3.8 million of the outstanding shares. Great Basin will have
working capital of $3.3 million and its principal resource properties will
be the Ivanhoe joint venture with Cornucopia Resources on the Carlin Trend,
Nevada, and the Casino gold-copper resource in the Yukon Territory.
Comprehensive details of the merger, including legal, tax and securities
aspects, are set forth in the companies' joint information circular dated
November 14 1997, which is being mailed to shareholders of the companies
for their extraordinary general meetings to be held on December 18 1997 in
Vancouver. Copies of the circular may be obtained directly from the
companies on request and on the internet via SEDAR. Completion of the
merger is subject to the approval of the shareholders of both companies by
special 75% majorities. as well as the approval of the VSE and the BC
Supreme Court. The companies have scheduled closing for December 31 1997,
subject to the foregoing approvals and other standard closing conditions.
Great Basin's initial focus will be to explore the 14.7 square mile Ivanhoe
property which is host to two primary exploration targets, the Hollister
and the Hatter gold-bearing systems. It is believed that both the Hollister
and the Hatter represent leakage zones from deep, high grade gold deposits
lying below.
Recent studies of Carlin Trend gold deposits have shown that the areal
extent and number of ounces of gold contained in near-surface leakage
zones, coupled with the presence of structurally controlled high grade gold
feeder zones in the Upper Plate clastic rocks, provides an approximate
measure as to the size and grade of major gold deposits which are found in
the more favourable, deeper Lower Plate carbonate rocks. In general, the
larger and stronger the surface leakage zones, the larger and richer the
deep gold system. Deep carbonate rocks are the most prolific host to gold
mineralization on the Carlin Trend and these have not yet been drill tested
on the Ivanhoe property.
The Hollister area is an extensive zone containing a near-surface,
geological resource in excess of three million ounces of gold. Deeper
portions of the Hollister system have yielded many drill intercepts of more
than 1 oz/t gold, with one core hole, interpreted as a feeder zone,
assaying 33.541 oz/t gold over a 2.4 foot interval. At Hatter, a granitic
intrusive hosts high grade veins yielding drill intercepts assaying up to
20 feet of 0.730 oz/t gold and in the surrounding clastic rocks, much
thicker, lower-grade drill intercepts of up to 525 feet of 0.012 oz/t gold.
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