Junior miners have come together with a flourish. The announcement came down on Monday that Vancouver-based Ascot Resources Ltd. (TSX-Venture:AOT) and IDM Mining Ltd. (TSX-Venture:IDM) have entered into a definitive arrangement agreement pursuant to which Ascot will acquire all of the issued and outstanding common shares of IDM.
Shareholders of IDM are buzzing at the prospect of receive 0.0675 of a common share of Ascot for each share of IDM held. The sale is good news for Ascot as well, because it will consolidate Ascot’s Premier Gold project and IDM’s Red Mountain project, to create the leading high-grade gold development and exploration company in northwestern British Columbia’s Golden Triangle. The combined entity will benefit from numerous operational and development synergies.
The Consideration values IDM at approximately 8.6 cents per share, representing a premium of approximately 54% to IDM shareholders based on the trailing 20-day volume weighted average price of each company as of the close of trading last Friday.
IDM is an exploration and development company based in Vancouver, focused on advancing the Red Mountain gold project towards production. The 17,125 hectare Red Mountain project is located in northwestern B.C, 15 km northeast of the mining town of Stewart. In 2018, IDM announced a 20.7% increase in high-grade, near-surface measured and indicated resources at Red Mountain. Located near a paved highway and grid power, IDM envisions bulk underground mining methods, with gold-silver doré produced on site.
Ascot shares gained six cents, or 4.7%, to $1.33, on 75,000 shares, while IDM tacked on half a cent, or 8.3%, to 6.5 cents, on 5.8 million shares.