TWO major Canadian mining companies, Goldsource Mines Inc. and Eagle Mountain Gold Corporation have merged forces with the aim of accelerating the development of the Eagle Mountain Gold Project, near Mahdia in Region Eight (Potaro/Siparuni).

Eagle Mountain Gold Corp. which has exclusive rights to Eagle Mountain announced the merger with Goldsource earlier this week. As a result, the company has become a wholly-owned subsidiary of Goldsource.

Meanwhile, top officials of both companies have expressed optimism that the merger will deliver good results for the Eagle Mountain gold mining venture.

Ioannis (Yannis) Tsitos, Chief Executive Officer (CEO), of Eagle Mountain Gold Corp. said that the merger had received the overwhelming support of the shareholders and he believed that this new era will drive significant growth and sustainable value for them.

J. Scott Drever, CEO of Goldsource Mines, disclosed that he was pleased that the business combination had been successfully completed.

He said: “The new Goldsource Mines brings together a powerful combination of well-defined gold resources and dynamic, successful people with strong financial capabilities.”

He added: “We are convinced that these attributes will set the stage for accelerated development of the Eagle Mountain Gold Project and enable us to commence gold production in Guyana on a ‘phased’ production basis prior to yearend.”

Goldsource also reported that it had recently raised Cdn $2.4 million by means of shares.

The company disclosed that proceeds, obtained by private placement, will be used to advance the Eagle Mountain Gold Project and serve general working capital purposes.
Eagle Mountain is located approximately 4 kilometers (km) from Mahdia.
Drill results to date have shown that Eagle Mountain contains a resource of 188,000 ounces of gold (indicated) at an average grade of 1.49 grams per ton (g/t) and 792,000 ounces (inferred), average grade of 1.19 g/t gold.
Eagle Mountain Gold Corp. previously disclosed that with the current resource covering only a small portion of Eagle Mountain – 250 hectares inside the 5,050-hectare property – there was excellent potential for expansion.

(By Clifford Stanley)