The merger between Roxmark Mines Ltd. and Ontex Resources Ltd. has taken effect. For more info, visit the Goldstone Resources Inc. website. The merger brings to investors, in one TSX-listed company:
- consolidation of properties in the Beardmore-Geraldton camp and a strong position from which to participate in additional future consolidation
- expanded known gold resources (nearly 1 million ounces indicated and inferred, 43-101 compliant) on the doorstep of the company-owned Northern Empire Mill—plus 30% of The Hardrock Project operated by Premier Gold where a 43-101 report is anticipated before the end of 2009
- greater resource potential, and synergies in exploration and development
- a larger market presence and diversification of risk
- a stronger combined Board and management team
- enhanced liquidity, capital market profile, and financial strength
- operating efficiencies leading to significant cost reductions.
The merger values each RMK share at .8 of an ONT share.
Roxmark plans to reopen the Northern Empire and Leitch/Sand River gold mines (the latter once Canada's richest and now 100% owned by RMK) to feed its fully permitted, upgraded mill. In addition, the Company will continue to delineate gold resources at other Company-owned properties, both unilaterally and through joint ventures like The Hardrock Project where Premier Gold is enjoying great success as operator. 2009 priorities include drilling and further assessing an important new structure identified at the Northern Empire Mine.
As drilling results by Roxmark and Premier Gold are showing, historic gold exploration and production on Roxmark lands left behind large amounts of ore in known deposits and missed other neighbouring resources altogether. In the Camps' initial production phase, which came to a close because of a $35 fixed gold price and border issues since eliminated, the Geraldton-Beardmore area ranked among the top five producing areas in Canada, generating 4.1 million ounces of gold.