VG:CA and Lexam Explorations LEX:CA announced that they have reached an agreement in principle to merge. The Plan of Arrangement would provide common shareholders of VG with one common share of the combined company for every share currently held. Lexam common shareholders would receive 2.1 shares of the combined company. Chairman/CEO of Lexam Rob McEwen will become the Chairman of the combined company, and President/CEO of VG, Tom Meredith, will continue to hold those positions. The merged company will focus on the Timmins mining camp in Northern Ontario.
President/CEO of VG Gold Tom Meredith told ResourceClips.com, “The merger will be beneficial because we do have very attractive projects with a significant amount of exploration potential that require strong funding. Merging with Lexam allows us to become Rob McEwen’s new Ontario gold company. As you know, he started Gold Corp and then he was at Rubicon Minerals, and so VG becomes his next Ontario gold project. The combination of the two companies brings together a very good asset package and a very good relationship with Rob McEwen.”
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by Ted Niles