Canadian Mining Journal

News

GOLD: Ascot enters definitive agreement to acquire IDM Mining



VANCOUVER – Ascot Resources 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, Ascot said that the goal behind the proposed acquisition is to create a prominent British Columbia gold exploration-development company.

“The pro forma company would own two advanced 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 oz. with an average grade of 7.4 g/t gold.

This is because, among other properties, the new company would be in charge of IDM’s Red Mountain project, which comprises a 170-km2 concession located 15 km north of the township of Stewart, with 180,529 metres drilled largely from underground and an updated feasibility study expected in the first half of 2019.

Around the same area, Ascot purchased the Silver Coin property, which comprises some 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 km 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.

This story first appeared on www.Mining.com.