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Mining firms update Commissioners on in-progress acquisition process

Representatives of Vancouver, British Columbia-based ORSA Ventures/ORSA Minerals and Ontario, Canada-based Alamos Gold, Inc., recently updated Lake County’s Board of Commissioners on the latter’s in-progress acquisition of the former.

ORSA President and CEO Linda Thorstad and Alamos Gold Vice Pres. Charles Tarnocai spoke to the Commissioners during their July 30 work session on the process, described in correspondence as a “friendly acquisition,” and detailed in a July 23 press release.

ORSA Ventures approached the County in the spring of 2012 with interest in pursuing a gold-mining operation on Quartz Mountain.

In an interview last week, Thorstad said that both firms have entered into a plan of arrangement that will be presented to shareholders on Wednesday, Sept. 11.  An interim court order is also in place, as along with shareholder approval, court approval on the arrangement is also required, she said, prior to closing on the transaction.

“One of the reasons we like Alamos to begin with was a set of shared values,” Thorstad said, reflecting on shared concerns for environmental preservation in developing the operation.  “We want to see that legacy continue.”

The actual mining operation is likely several years off – at minimum three years — from being up and running due to the process of permitting and related necessary approval, said Tarnocai.

Employment opportunities associated with the operation will be slow to begin with, but gradually increase as the project progresses, he said. He declined to estimate hard numbers for potential jobs created by the Quartz Mountain operation, but said that figures for the desired project scale in other instances often number between 300 to 500 employees.

A professional technical report indicates a potential resource of 2.85 million ounces of gold on the Quartz Mountain property, Thorstad said, which includes Crone Hill and Quartz Butte locations north of Hwy 140.

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