Junior precious metals miner, U.S. Silver has plans to takeover another junior mining interest, RX Gold & Silver. Both companies base their operations in the United States. The agreement was signed by the companies in early June 2012. The contract leaves shareholders of U.S. Silver with nearly three-fourths of the new combined enterprise. RX Gold & Silver shareholders will get 0.109 shares in the new venture, while U.S. Silver will have 0.67 shares. The merged company will be known as U.S. Silver & Gold.
Both companies are majority owned by Canadian company, Sprott Asset Management. CEO, Eric Sprott has expressed whole-hearted support for the plan, which he believes will benefit all concerned. The pre-takeover companies will split management equally in the new company.
Each of the combining companies holds operations of recently revamped historic mines. Idaho’s Galena mine and Montana’s Drumlummon mine are producing silver, while the latter is also yielding gold.
