New Jersey Mining Merger Assured

Although a special meeting is scheduled Jan. 27 to finalize the deal, early response from shareholders has ensured the acquisition of Plainview Mining Co. by Kellogg-based New Jersey Mining Co.

New Jersey Mining President Fred Brackebusch said his company has acquired 50.2 percent of outstanding Plainview shares in a two-for-one stock offering.

The merger will allow New Jersey Mining to assume Plainview’s position on the Nasdaq over-the-counter bulletin board.

“We think that’s the key to this whole thing,” Brackebusch said. “Once we get on the bulletin board, people all over the country will have access to this market through electronic trading.”

There are about 850 Plainview shareholders. Brackebusch said the combined number of shareholders under the merger will be about 1,000. The stock offering has been extended until the Jan. 27 meeting.

The recent surge in silver prices has led company officials to consider a diamond drilling exploration schedule rather than immediate completion of the gold milling facility at the New Jersey Mine near Kellogg.

“If we can get some good silver intercepts, that’ll help us raise some more money,” said Brackebusch.

“The price of silver looks like it’s going to stay strong enough to perk up the whole (Silver Valley) district, eventually,” he added.

In the merger, New Jersey Mining also picks up a 17.5 percent interest in another silver prospect, the CAMP project, located in the heart of the Coeur d’Alene Mining District. That property was leased to Coeur d’Alene Mines under a 1979 operating agreement.

“It’s currently leased by Silver Valley Resources Corp.,” Brackebusch said, explaining that Coeur is a partner with Asarco in that venture. “We still have homework to do on it, but as far as we know, there are no reserves on that property.”

The New Jersey Mine, meanwhile, has projected reserves of 362,000 tons of gold ore, according to the company prospectus. Brackebusch says higher than expected ore grades will boost the yield.

“Based on potential reserves of 500,000 ounces of gold, we think there’s the potential for 3 million or 4 million tons of ore once we do the exploration and drilling,” he said.

, DataTimes