The proposed merger of Wesdome Gold Mines and Western Québec Mines (WQM) has been approved by each of their shareholders at annual and special meetings. Also Mr. Justice Robert Dufresne of the Quebec Superior Court of Justice in Val d’Or, Quebec, issued the final order of the Court approving the Plan of Arrangement under which the Merger will be effected.
Each common share in the capital of WQM will be exchanged for 1.45 common shares in the capital of Wesdome. The shareholders of WQM will become shareholders of Wesdome and WQM will become a wholly-owned subsidiary of Wesdome. Closing of the Merger is subject to customary closing conditions and regulatory approvals, including the approval of the Toronto Stock Exchange. Completion of the Merger is expected to occur on or about July 10, 2007.
Wesdome’s principal assets consist of the Kiena mine property, the Shawkey property and the Wesdome property. WQM is a gold mining and exploration company based in Val d’Or that maintains significant exploration properties in the Val d’Or region, including approximately 1,000 ha of land contiguous to Wesdome’s Val d’Or assets. WQM’s principal assets are the Joubi and Mine-École properties in Dubuisson Township, Québec.
WQM was incorporated in February 1945 to explore and develop the Wesdome property in Val-d’Or. In 1994, WQM acquired a 60% interest in the Eagle River property near Wawa, Ontario, and a controlling interest in Central Crude, which owned the remaining 40% of the Eagle River property. The 60% interest in the Eagle River property was thereafter transferred from WQM to Central Crude, which then changed its name to River Gold Mines and commenced exploration and development of the Eagle River property. In 1999, WQM created Wesdome to explore and develop this property and in 2003 Wesdome acquired the Kiena, Shawkey and McKenzie Break properties. Wesdome completed an initial public offering of the Wesdome Shares on October 1, 2001, and as at May 28, 2007, WQM owned 30,129,500 Wesdome Shares or approximately 33% of the issued and outstanding Wesdome Shares.