Two Vancouver junior gold exploration companies are consolidating their Nevada properties and merging to find additional acquisition opportunities in the silver state.
Bravada Gold Corp. (TSX-V:BVA) and Fortune River Resource Corp. (TSX-V:FRX) will be known as Bravada following the merger. The new company will focus exploration activities on its 20 combined properties, covering about 13,000 hectares in Nevada.
The merger will see Fortune shareholders receive one share of the merged company in exchange for two shares of Fortune. Bravada shareholders will receive one share in the new company in exchange for one share of Bravada.
Fortune estimates the mineral resource at its Wind Mountain property contains roughly 500,000 ounces of gold. It was previously an open-pit mine. Further pre-feasibility work at the property is budgeted at $1.8 million.
Bravada recently completed a $1 million equity financing to fund further exploration activities and acquire additional properties in Nevada. It is also completing drilling programs at its lead project, the Signal property.
The merger was made easier by the fact that Manex Resource Group’s support staff in Vancouver and its geology staff in Reno already handle both firms’ operations.
Bravada’s share price range during the past week: between $0.13 and $0.16; 52-week high: $0.32; 52-week low: $0.14.
Fortune River’s ’s share price during the past week remained at $0.06: 52-week high: $0.14; 52-week low: $0.04.