Irvine’s Belcor OKs All-Stock Merger With SilTex Resources

Belcor Inc., an Irvine-based resources company, said it has approved a merger with privately owned SilTex Resources Inc. in an all-stock transaction.

The companies said the deal is expected to include the issuance of 9 million Belcor shares, 66% of the shares outstanding, to SilTex owners. The deal is subject to Belcor shareholder approval.

Belcor President Mark S. Isaacs owns 70% of SilTex. He obtained the ownership position before becoming president of Belcor, the companies said.

SilTex, a precious metals concern, is negotiating to acquire the Shafter silver district in Presidio County, Tex., from Gold Fields Mining Co., a unit of Hanson Natural Resources.

The Shafter district is not in production, but the companies said it has a proven accessible reserve base of about 40 million ounces of silver. SilTex has total assets of about $1.6 million.

In connection with the SilTex acquisition, Belcor must obtain at least $2 million in financing to complete the Shafter purchase and provide working capital. The company said it is exploring various sources of funding.