U.S. Silver and RX Gold Agree to Merge
U.S. Silver is currently redeveloping the historic Coeur mine in Idaho, with a goal of first production by the end of 2012. The mine is expected to reach its full produc-tion rate of 500,000 oz/y by the end of 2013. A key objective of the combined company will be to exceed 5 million oz/y of silver production by 2014.
Upon completion of the transaction, the board of directors of U.S. Silver & Gold will comprise four current U.S. Silver board members and four current RX Gold board members. Gordon Pridham, executive chair-man and interim CEO of U.S. Silver, will serve as chairman of the board of the com-bined company. Darren Blasutti, currently president and CEO of RX Gold, will assume the same role for the combined company.
Shareholders of the two companies will vote on the transaction in early August, and the transaction is expected to close before the end of August. Current U.S. Silver shareholders will own about 70% of the combined company, and RX Gold share-holders will hold the remaining 30%.