It is rather sad to see the wimper with which the Yamana versus Meridian battle ended. There are over eighty web sites with the story, so I repeat none of the details. Except this neat statement about Meridian’s long refusal to be bought out, citing concerns about their gold cavorting with the copper-inclined crowd:
But the sweeter financial terms appear in their usual magical way to have leached away any concerns about copper.
The news reports are characteristically dripping with new-found syrup and love between the directors whose previous pugilistic instincts are now tamed. Only one sour note: a report drawing attention to Esquel:
One stumbling block could be the controversial Esquel project, which was rejected in a referendum in March 2003 by the residents of the town in Patagonia, Argentina. In response to an analyst’s question, Marrone called the Esquel project “pivotal” to the future production.
Meridian has spent many dollars on that project, redoing the whole EIS from open pit to undeground mine, and fighting groundwater experts up and down the peaks and valleys. But for now the lawyers appear to have won the skirmishes: getting the use of cyanide outlawed and the mine on hold. Maybe Canadian “sensitivity” will prevail where Reno action failed. But I would not hold my breath that this project will move ahead any time soon. I hope it is not that “pivotal” to the success of the new Yamana/Meridian. Surely they have done their due diligence?
It should be no secret that over the years, on and off, I have done various consulting jobs for Meridian. I admire the folk with whom I have been lucky to work. I mentioned Peter Dwelley the other day and half the room recalled this tall, lanky fellow who talked me around the Royal Mountain King Mine. Who could forget his response when a downstream property developer climbed out of a red convertible, and replete with open shirt, hairy chest, and gold chain started to scream that he would sue Pete if one ounce of salt left the site and landed on his golf course. Peter has moved on and others now deal with the incessant Regional Water Quality Control Board.
Then there is Adam Whitman who runs the Beartrack property. Surely he will be snatched away from this beautiful place and sent on to greater things now? But only once he has put the final cover in place on the heap leach pad?
Then there was the time we flew north into the snow and cold of Quebec to view the property that was billed as the next Witwatersrand. The bread in the small plane was cold and hard; the coffee tepid; the conversation desultory; and the sellers in high spirits. With the Meridian team, we calculated long and hard, but another of those dastardly Vancouver companies outbid Meridian to become the owners of Eleonore. Can you imagine what Yamana would have had to pay if that play had succeeded?
It seems sad that they now are themselves the “victims” of the hunting game that is politely called takeover. It will be interesting to see how Toronto deals with the California and Idaho regulators and the politicians of Argentina. We wish them all the best.
