Chalice Gold MinesChalice Gold Mines (ASX: CHN) is merging with Canadian gold developer Coventry Resources (CVE: CYY, ASX: CYY), which owns the Cameron Gold Deposit in Ontario, Canada, that hosts a Measured and Indicated Resource of 567,000 ounces of gold. Under the proposed Mmerger, Coventry shareholders will receive 1 Chalice Share for every 1.78 Coventry Shares and will hold approximately 17% of the merged company. This values the offer at $0.098. Last closing price for Coventry was $0.08. The offer represents a premium of about 23% based on the closing share prices of Chalice and Coventry on the ASX on 27 September 2013. The proposed Merger has the full support of directors from both companies. Chalice is sitting on cash of A$55 million. Cameron Gold Deposit The Cameron Gold Deposit is located about 80 kilometres southeast of Kenora and 80 kilometres north-northwest of Fort Frances. It hosts a Measured and Indicated Resource of 567,000 ounces of gold at 2.45 grams per tonne and an Inferred Resource of 830,100 ounces of gold at 2.11g/t. In addition there are Indicated and Inferred gold Resources of 59,000 ounces at 2.28g/t and 18,2000 ounces t 1.44g/t at the Dubenski satellite deposit and 24,000 ounces at 3.02g/t and 4,600 ounces at 2.27g/t at Dogpaw. A positive Preliminary Economic Assessment (“PEA”) was completed on the deposit in January 2013 which showed average annual production of 61,000 ounces of gold and an initial 10-year mine life at an average cash cost of US$852 per ounce. Initial development and capital expenditure was estimated at US$110 million.