Shore Gold confirms ‘preliminary’ deal negotiations as share price hits five-year high

Shore Gold confirms ‘preliminary’ deal negotiations as share price hits five-year high

Published on: June 5, 2017 | Last Updated: June 5, 2017 4:53 PM CST


Shore Gold Inc’s Star-Orion-South diamond property east of Prince Albert, Sask. SASKATOON

A Saskatoon-based diamond exploration and development company has confirmed it’s in “preliminary negotiations” with an unnamed third party about a transaction involving its mineral properties.

Shore Gold Inc. issued the statement Monday, a few days after speculation surrounding the unexpected cancellation of its annual meeting drove its share price to a five-year high of $0.435. Its share price last climbed above $0.40 in early 2012.

“No agreement has been reached and there is no assurance that these discussions will continue or that any transaction will be agreed upon,” Shore Gold said in a terse statement, which it said was issued in response to “recent trading activity” involving its shares.

“If the discussions result in agreement upon a transaction, of which there is no certainty at this time, an announcement will be disclosed in accordance with applicable legal and regulatory requirements,” the statement said.

Shore Gold announced last week that the meeting, which had been scheduled for June 30, would be held later in the year. The new date for the 2017 meeting has not been set “but it is anticipated that it will be set shortly,” the company said in a news release.

Ken MacNeill, the company’s president and CEO, said last week that the board decided “it’s the best thing for the corporation to hold it a little later.” MacNeill said he could not comment further as he cannot speak on behalf of the board of directors.

Shore Gold has been working to establish a $2.5 billion diamond mine on its Star-Orion property in the Fort à la Corne forest east of Prince Albert since 1995. Its updated feasibility study is expected to project a “significant” reduction in capital costs.

The postponement comes three months after the SGF Shareholders Association Inc., a group of Shore Gold investors concerned about the company’s direction and communications, said it planned to continue working to shake up its board of directors.

A controversial proxy vote at the company’s last annual meeting in June 2016 came within a few percentage points of unseating three of its directors. Shore Gold’s chairman deemed the vote illegal but allowed the results to stand.

Reached by phone, SGFSA spokesman David Wright said the association was not yet ready to comment on the meeting’s postponement.




About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on June 6, 2017, in diamonds. Bookmark the permalink. Leave a comment.

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