Independence Resources Plc has acquired 70% of Coeur d’Alene Mine Contracting LLC, whose principals are well-known mine contractors and operators in the U.S. Pacific Northwest. Jeff Lambert and Steve Ivie are the two principal owners of CDA Mine Contracting. Both are mining veterans having spent the past 24 years in the underground hard rock mining industry.
Lambert and Ivie both worked their way up through various positions beginning at the Sunshine mine in 1988. Following multiple years working as lead miners at some of the most challenging deep hard rock mines in North America, they started a mine contracting company in 2005 which ultimately developed into the formation of United Mine Services. UMS is now part of the Toronto-listed publicly traded company United Silver and has been a key part of the growth and success of that company.
“This transaction is a very good one for us,” said John Ryan, CEO, Independence Resources. “We believe the acquisition will bring substantial revenue to the company in the near term which is a huge plus as most junior mining companies never get to the stage of producing revenue. The demand for high quality and experienced miners far exceeds the supply, so contracting requirements of major mining companies are often going unfilled. Companies have more work then there are miners to fill the jobs, so I am highly confident in our ability to produce steady highly profitable revenue from this sector year in and year out.
“Mine contracting is also a growth industry and the major limitation is finding skilled miners,” said Ryan. “Here, Ivie and Lambert have demonstrated over the years their ability to attract and retain the best skilled personnel and secondly, they have a hands-on training model that produces outstanding results. So we believe can grow this business both through attracting existing skilled miners and organically through training our own mining personnel. Additionally, Ivie and Lambert know how to operate productively and safely and in compliance with all applicable mining safety laws.”
In connection with the acquisition of CDA Mine Contracting, the company is issuing 2 million shares of its common stock and paying $200,000 in cash. In addition to receiving its 70% interest in CDA Mine Contracting, the company also purchased 100% ownership of 42 mining claims located in Lemhi County, Idaho, from Lambert and Ivie.
“In addition to getting a majority stake in what I think will grow into one of the premier underground mine contracting service companies in North America, we are also getting a very significant addition to our land package located near Salmon, Idaho,” said Ryan. “These new claims are highly prospective for both silver and gold, have demonstrated significant past production, and fit well with our overall focus in Lemhi County, Idaho.”