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Tuesday, 30th December 2008 (984 views)

A merger deal between Linear Gold and Central Sun Mining has been hailed as an "attractive opportunity" for both firms.

The two companies have signed a letter agreement in which Linear will acquire outstanding common shares of Central Sun, in exchange for common shares.

President and cheif executive officer of Linear Gold Wade Dawa stated that the deal will allow the organisations to build a "very profitable" gold producer.

"We believe this transaction is an attractive opportunity to acquire a portfolio of gold assets," he remarked.

His opposite number, Stan Bharti of Central Sun, echoed his sentiments, saying that the agreement "will form the basis for the next intermediate gold producer".

He added that the combination of the two firms brings together an experienced management team with the potential for production expansion.

Meanwhile, Shandong Gold Mining has revealed it is to purchase a 74 per cent stake in Chifeng Chaihulanzi Gold Mining.

 

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