The shareholders of Red Eagle Exploration (XR.V) overwhelmingly approved (by 100%) the merger with Red Eagle Mining (R.TO). Not a surprise, as we already explained here why the merger appeared to be a good move for the Exploration company – which was controlled by Red Eagle Mining anyway.
The deal should now close within the next few days, and the XR shareholders will now be part of a company that is actually producing gold. The Santa Rosa production rate is still increasing and after producing 1,100 ounces of gold in January and 1,974 ounces in February, Red Eagle’s March production rate increased to 2,651 ounces thanks to a higher throughput, a higher grade and a higher recovery result. The company is also closing the gap between tonnes mined (614/d) and tonnes processed (727 t/d), but still has some way to go.
Fortunately the new equipment has finally arrived, so we would expect to see Red Eagle close the gap between tonnes mined and processed, and to increase the production even further as it will now access some higher grade gold zones. Red Eagle is aiming to increase the mining rate to 1,000 tonnes per day throughout the quarter.