Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Dataram Corp. (DRAM:NASDAQ), which has been in the IT memory business, intends to acquire U.S. Gold Corp. as part of its strategy for business diversification and growth through acquisition. The company stated in its March 9 news release that the “natural resources segment represented a market opportunity that would diversify the Company’s business model and thereby potentially mitigate risk associated with focusing on one industry.”
U.S. Gold Corp. is advancing the Keystone project on the Cortez Trend in Nevada and the Copper King project in Wyoming. Last year exploration geologist Dave Mathewson joined U.S. Gold as vice president and head of exploration. Mathewson is credited with discovering the Tess, Northwest Rain, Saddle and South Emigrant deposits when he was head of Newmont Mining’s Nevada exploration team. His work also led to the consolidation of the Railroad-Pinion district and the North Bullion and Bald Mountain discoveries when he was at Gold Standard Ventures.
Dave Moylan, Dataram’s chairman and CEO, said of Mathewson, “Dave is a strong addition to the U.S. Gold team and brings more than 35 years of exploration experience in Nevada. He is a well-known and respected exploration geologist who is credited with many discoveries, and one of a handful of world-class geologists that historically finds new gold deposits.”
Dataram has called a special meeting of shareholders on March 30 to vote on the acquisition. The company also noted that Dataram to approve the merger and implement a reverse split of common stock. Dataram also noted that the “Board will also declare a special dividend for the shareholders of record as of no less than five (5) business days prior to closing. This means the Company shareholders of this record date will receive a special dividend from the net proceeds should the Board elect to divest the memory business within eighteen (18) months of the Closing Date of the U.S. Gold acquisition. While there is no current plan to divest, should this become a future consideration, the intent is to ensure the benefit is received by, and only by, the pre-close shareholders.”
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