A merger with another small mining company
The owner of the Galena Mine in Idaho’s Silver Valley is proposing a merger with another small mining company.
U.S. Silver and Gold Inc. announced late last week that it had reached an agreement with Scorpio Mining Corp. to combine operations, subject to approval by shareholders and the Toronto Stock Exchange. The new firm would take Scorpio’s name.
The merger would help U.S. Silver and Gold diversify its asset base during a period of low silver prices and also provides potential for growth, said Darren Blasutti, U.S. Silver and Gold’s president and chief executive officer.
In addition to the Galena silver mine near Wallace, U.S. Silver and Gold owns an exploration property in Montana. Scorpio owns the Nuestra Senora Mine in Mexico, which produces zinc, copper and lead, and other Mexican mining properties. Both companies are headquartered in Canada.
Shareholders will vote on the proposed merger in mid-December, with the deal expected to be finalized before the end of the year. U.S. Silver and Gold’s shareholders would receive 1.68 shares in Scorpio Mining for each share they currently hold.
Blasutti would lead the combined management team for the new company as president and chief executive officer. Scorpio founder Peter Hawley would be chairman of the board.