Business
San Gold Corp and Kerr Mines Inc Enter into Letter of Intent to Merge Businesses
San Gold Corp and Kerr Mines Inc Enter into Letter of Intent to Merge Businesses.
About this update from San Gold Corporation
[{"type":"text","content":"\n\n\n\n\nMarketwire\n\n\n\n\nSan Gold Corp and Kerr Mines Inc Enter into Letter of Intent to Merge Businesses\n\n\n\n\n\n\n\n\n\n WINNIPEG, MANITOBA and TORONTO, ONTARIO--(Marketwired - July 21, 2014) - \n NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES.\n San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) (\"San Gold\") and Kerr Mines Inc. (\"Kerr Mines\") (TSX:KER) are pleased to announce that they have entered into a non-binding letter of intent (the \"Letter of Intent\") pursuant to which San Gold and Kerr Mines have agreed to merge their respective businesses pursuant to a plan of arrangement (the \"Transaction\"). \n \"This combination reflects our new strategy of operating multiple, efficient high grade gold mines that are located in mining friendly jurisdictions. Our operating principles of strict grade control, better cost control, lower overheads and operating the mines at the optimum mining rate to properly match the geometry of the orebodies are paying off at Rice Lake and will be applied to other projects, most notably at the Copperstone gold mine in Arizona. The high grade Copperstone mine will be similar in size to the Rice Lake mine and with the ability to restart quickly with low capital requirements under our combined management team. As well, our large portfolio of advanced gold deposits and projects in the Timmins and Kirkland Lake regions is increased immensely with our ownership in SGX Resources in combination with the current Kerr assets,\" said Gestur Kristjansson, San Gold's President and Vice President Finance.\n \"It's important to emphasize the extent to which San Gold has reshaped itself over the past four months. This merger provides an important step toward ensuring the full potential of that effort is realized. With more than one producing mine, San Gold is better positioned to get optimum utilization of the knowledge and skills of the operating team and better diversified use of equipment and infrastructure, resulting in greater efficiencies and lower overall costs,\" Mr. Kristjansson, added.\n \"San Gold has made tremendous strides in its turnaround over the past three months. Greg Gibson and the Kerr team have made important contributions to that turnaround. The next step to creating a mid-tier producer will be applying the same princi...