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Monday, 17th November 2008 (1583 views)

Shareholders of Sherwood Copper have voted in favour of combining the company with Capstone Mining.

A total of 99.9 per cent of Sherwood shareholders voted for the deal, which will see the two companies renamed Sherwood and Capstone.

Vancouver-based Sherwood Copper owns 100 per cent of the Minto copper-gold mine in Yukon, Canada, one of the highest-grade open pit copper-gold mines in the world.

Full production capacity is expected at the company's mines in 2009 and new resource estimates are in process and predicted to result in increased reserves.

The merger will enable the two companies to expand their operations, enhance their balance sheet and extend their metal production base.

According to Reuters, junior mining companies are likely to seek merger deals in order to ensure they maintain cashflow in the wake of the recent credit crunch, pushing forward projects and ensuring that they hold onto their licences.

 

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