2future4u,
From the release -
Prosperity Goldfields President & CEO, R. Bruce Duncan stated, "The proposed business combination of Prosperity and Smash represents a major positive development for the shareholders of both companies. It will greatly strengthen the treasury of the combined company and will thereby support an aggressive exploration and drilling program at Kiyuk, where strong drill results have only begun to test numerous well-defined targets occurring along a 24 km strike length of gold-bearing strata in the Kiyuk Basin. Mr. Duncan further stated, "The transaction, if completed, will bring together a strong exploration team from Smash with significant exploration experience in northern Canada which, together with the continued geological input from Dr. Quinton Hennigh and a combined expertise in permitting, should enable the combined company to take the exploration and drilling at Kiyuk to the next level of discovery."
"The proposed business combination of Smash and Prosperity will bring enhanced value to Smash shareholders by broadening our exposure with a second gold exploration play that has already returned solid drill results," stated Adrian Fleming, President of Smash Minerals. "I also look forward to the technical input of Quinton Hennigh, a geologist with an enviable track record of discoveries."
Prosperity Goldfield's 100% owned Kiyuk Lake gold property in southern Nunavut is located 100km northeast of the four corners of Saskatchewan, NWT, Manitoba and Nunavut. The property consists of 50 claims covering an area of 430 km2. Gold showings were first recognized in 1992. Newmont explored and drilled the property from 2006 to 2008 but the drilling was not successful. Quinton Hennigh brought the property to Evolving Gold Corp. in 2009 and it was subsequently vended to Prosperity and listed in February 2011. Prosperity's first drilling program in 2011 included 14 holes for a total of 2600 m's, which returned encouraging results from three separate targets. At the Rusty Target hole 1 returned 157.6m at 1.7g/t Au from the surface including 30.5m at 4.9g/t Au from 5.2m. At the Gold Point Target hole 3 returned 63.6m at 2.84g/t Au from 148.6m. Additional aggressive exploration and drilling is planned to commence in March 2012.
As Prosperity has only one property (Kiyuk) per their website and no updated financials, it's speculation on my part. Kiyuk had some intersting findings at length, enough for Smash to agree to combine forces. Smash has a decent cash position and expertise. The share arrangement is still puzzling to me.
RL
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