SHAREHOLDERS of a mining and exploration company that’s ready to set-up-shop in Terrace have approved a merger.
Dolly Varden Silver Ltd.’s shareholders approved a merger between it and Twin Glacier Resources Ltd. Nov. 15. The deal is expected to close this month subject to being approved for listing on the TSX Venture Exchange.
To date, Dolly Varden Silver Ltd. has raised $10 million privately and began exploration in the upper Kitsault Valley area this July.
While the Toronto Stock Exchange application is pending, the company is setting up an office, storage facility and research base in town.
The chosen location is 4926 Greig Ave., a location awaiting final zone amendment approval to suit industrial purposes instead of commercial.
“I like Terrace because it’s got good logistics,” said Dolly Varden Silver Ltd. director Paul McGuigan, who said the area has a strong base of industrial suppliers and local skilled tradesmen, and also access to Dolly Varden Ltd.’s property.
The 9,374 hectares of property are near Alice Arm, and mineral tenures were purchased earlier this year, said McGuigan in an e-mail.
The area was once home to an active silver mine that produced 20 million ounces of silver between 1919 and 1959.
Remaining resource estimates from that time show 5.7 million ounces of silver are probably and another 8.5 million ounces are possible, he said. Prospects for gold and base metals are also good, said McGuigan.
“We’re planning to drill and to explore and prove up additional reserves sufficient to go into production,” he said, adding it will take about two years to assess that potential.
“About one half of our local hires were Nisga’a in 2011,” said McGuigan. “We are looking forward to increasing our good relationship with the Nisga’a community.”
Editor’s note: This article was updated December 7, 2011. It initially read 4926 Greig Ave. was awaiting re-zoning, when in fact it is awaiting an amendment to current commercial zoning.
To clarify, while the amendment will enable business of a more industrial nature, this involves the storage of rock specimens, a research facility and office space, all of which can occur by adding an allowable use for that property.