HELENA, Mont. -- Two companies that own gold and silver mines in Montana and Idaho have proposed a merger.

U.S. Silver Corp. and RX Gold & Silver Inc. announced Friday they plan to combine to form a new company called U.S. Silver and Gold Inc. Its board of directors will include four board members from each current company and the new company will be run by managers from both companies.

RX Gold owns the Drumlummon gold and silver mine northwest of Helena while U.S. Silver owns the Galena mine in northern Idaho and has announced plans to bring its Coeur d'Alene mine back into production.

Under the agreement, U.S. Silver shareholders will own 70 percent of the new company, while RX shareholders will own the remaining 30 percent.

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