Ascot Resources enters agreement to acquire IDM Mining
Ascot Resources (CVE: AOT) announced this week that it has entered into a definitive arrangement to acquire all of the issued and outstanding common shares of IDM Mining.
In a press release, the Vancouver-based miner said that the goal behind the proposed acquisition is to create a prominent BC gold exploration/development company.
“The pro forma company would own two advance-stage high-grade gold projects in the Gold Triangle in British Columbia, a district which has garnered significant attention due to the commencement of production at Pretium’s Brucejack deposit and the discovery of high-grade porphyry-style copper-gold mineralization at GT Gold’s Saddle North project last year,” Ascot management said in the media brief.
According to the miner, the combination of IDM and Ascot would consolidate a global resource base of almost 3 million ounces with an average grade of 7.4 g/t gold.
Among other properties, the new company would be in charge of IDM’s Red Mountain project, which comprises a 170-square-kilometre concession located 15 kilometres north of the township of Stewart, with 180,529 metres drilled largely from underground and an updated feasibility study expected in H1/2019.
Around the same area, Ascot purchased the Silver Coin property, which comprises 8,039 hectares.
“Upon closing, the companies will have further consolidated two, 15+ km long early-Jurassic geological trends totaling 25,000 hectares, which host multiple advanced deposits with significant potential new high-grade gold discoveries located 25 kms from each other,” the media statement reads.
If the buyout moves forward, IDM shareholders would receive 0.0675 of a common share of Ascot for each IDM share held equating to approximately C$0.086 per share and a premium of ~54% to IDM shareholders based on the trailing 20-day volume weighted average price of each company. In parallel, IDM shareholders would hold approximately 16.7% of Ascot shares on an outstanding basis.