Antilles Merger Deal Is Threatened

A proposed merger between Antilles Resources of Spokane and American Coppermine Resources Ltd. of Canada has stalled.

Shareholders of Antilles were to have traded every three shares they own for one share of American Coppermine, said John B. Hite, Antilles president.

In turn, American Coppermine shareholders would get 1.0776 shares of new stock for every share of American Coppermine they held. Antilles would be absorbed into American Coppermine.

The deal, announced Feb. 21 of this year, ran into trouble because American Coppermine officers have backed away from the merger agreement, Hite said.

“They believe the deal is now unworkable,” said Hite, one of three employees at the small mining-exploration firm.

Since the officers of American Coppermine had signed the merger agreement, Hite said he and Antilles will sue for breach of contract.

American Coppermine is a small, privately-held company registered in British Columbia. Its officers could not be reached this week.

The company’s principal asset is the White Mesa copper mine in Northern Arizona, which is valued at $22 million, Hite said.

Antilles owns half of two large Venezuelan gold projects and has exploration opportunities in Mexico.

Hite said he hopes that American Coppermine officials would reconsider the merger proposal before Wednesday, when the suit will be filed.

“Our intention is to go through with the merger,” he said. “We think it is a fair deal for both of us.”