IDM Mining Ltd. and Ascot Resources Ltd. are joining forces to create a premier mine development and exploration company with two high-grade gold-silver mine projects near Stewart, a mining town in northwestern British Columbia’s Golden Triangle.
“The combination of Ascot and IDM creates a very attractive opportunity in northwest British Columbia’s Golden Triangle for our shareholders and stakeholders,” said Ascot Resources President and CEO Derek White. “Based near the historic mining town of Stewart, this area has hosted several prominent, profitable, and high-grade gold mines and we see that similar potential going forward.”
In an all-shares deal announced on Jan. 7, IDM shareholders would be issued 0.0675 shares for every IDM share held. The value of this buy-out works out be roughly C8.6 cents per IDM share, or about C$41.35 million, which is a 54 percent premium to IDM shareholders.
IDM Mining President and CEO Rob McLeod is a third-generation resident of Stewart and hopes this deal will result in a new generation of mines that will revitalize the economy of this northern B.C. mining town and provide new opportunities for the people that live in and around this community at the southern tip of the Golden Triangle.
“In addition to long-term value for both shareholders of Ascot and IDM, this combination provides a critical mass and optionality for development of multiple high-grade gold deposits which will result in significant stakeholder benefits for citizens of the Nisga’a Nation, for my hometown of Stewart and for my friends in the border town of Hyder (Alaska),” said IDM Mining President and CEO Rob McLeod.
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