Talisker Resources (TSX: TSK) will acquire New Carolin Gold (TSXV: LAD) and its 143.8-sq.-km Ladner gold project in southern B.C. in an all-share deal valuing the shares at 9.5 cents apiece.
The highway-accessible Ladner project covers the northern part of the Coquihalla gold belt and contains the former Carolin gold mine. Located about 150 km east of Vancouver, the project has an existing mine permit of 1,300 t/d and a tailings storage facility, with mining last taking place in the 1980s.
“The acquisition of New Carolin is directly in line with Talisker’s strategy to consolidate quality mineral assets in south central British Columbia,” said Terry Harbort, Talisker's president and CEO, in a release. “The Ladner Gold Project forms a strong complement to our flagship asset at Bralorne with a compliant mineral resource estimate and a district size land package, and we expect this purchase to represent another transformational transaction for Talisker.”
Under a definitive agreement between the two companies, each issued and outstanding share of New Carolin will be swapped for 0.3196 of a Talisker share. Based on Talisker's five-day volume-weighted average trading price, the deal implies a value of 9.5 cents per New Carolin share. The company has 56.1 million shares outstanding.
In addition, Talisker has agreed to settle $500,000 of New Carolin's outstanding payables after the transaction closes, and has advanced $400,000 to the company to repurchase a 5% net profit interest on Ladner, and for general corporate purposes.
The deal requires approval by New Carolin shareholders with two thirds of the votes cast in favour.
A 2015 estimate put inferred resources at the Carolin mine at 12.1 million tonnes grading 1.53 g/t for 607,000 oz. gold.
Highlights from 2018 drilling at the project include 93 metres of 1.39 g/t gold, including 7 metres of 5.75 g/t gold. Historic drill results are highlighted by 10 metres of 17.05 g/t gold and 21.4 metres of 10.85 g/t gold. The Carolin mine produced around 45,000 oz. of gold between 1982 and 1984.
Talisker holds several projects in south-central B.C., including its advanced Bralorne gold project, 248 km northeast of Vancouver, where it is conducting a 100,000-metre resource definition program. The Bralorne project holds three historic mines. Talisker also holds about 85% of the Spences Bridge Gold belt.
New Gold (TSX: NGD) acquired a 14.9% interest in Talisker earlier this year.
For more information, visit www.taliskerresources.com.
This story has been corrected: A previous version said there was a mill onsite. The mill was dismantled in 2006.