Page 66 Contd on pg 67 Mergers result in San Gold Corp economic conditions in the fund rais seek ways to survive By Gregory Reynolds Mer g ers are changing the face of min ing in Northern Ontario as the tough Mineral executive Greg Gibson after building T r elawney Mining and Ex ploration Inc into a valuable gold ve hicle that IMGOLD bought for 608 million has put together a stable of companies under the Kerr Mines Inc banner that he is planning to mer ge with producer San Gold Corporation Gibson is both president and CEO of T orontobased Kerr and CEO of W i n nipegbased San Gold Elsewhere Sudburybased Canadian Arrow Mines Limited is becoming part of T orontobased Darnley Bay Resources Limited V a rious conditions must be met before the two planned mer gers can happen Darnley Bay s main focus is explo ration for base metals and diamonds in an area surrounding the hamlet of Paulatuk located along the shores of Darnley Bay in the Inuvialuit Settle ment Region NWT Canada Canadian Arrow is an experienced exploration and mine operating team that is focused on acquiring and de veloping economically viable nickel sulphide deposits near existing infra structure Canadian Arrow operates in Northwestern Ontario near the T owns of Kenora and Dryden The company s main asset is the Ken sulphide deposit containing over 98 million lbs of nickel in Measured and Indicated Resources The deposit is equipped with a 620m shaft and has never been mined The company also owns the past pro ducing Alexo and Kelex Mines lo cated in the east Abitibi nickel district east of T immins The Alexo and Kel ex historically produced over 87000 tonnes at 306 nickel and were closed down due to low metal prices despite remaining reserves potential The mines remain permitted and are under review for a rapid restart of and Darnley Bay becoming bigger