Ascot Resources Ltd. announced it intends to acquire all the outstanding shares of IDM Mining Ltd. The transaction 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 near the historic mining town of Stewart. This area has hosted several prominent, profitable, and high-grade gold mines.

Each IDM shareholder will be entitled to receive 0.0675 of a common share of Ascot for each share of IDM held. The consideration values IDM at C$0.086 per share, representing a premium of 54% to IDM shareholders. Upon completion of the transaction, IDM shareholders will hold 16.7% of Ascot shares on an outstanding basis.

“At this time in the gold sector, scale is important and together with the Red Mountain project, the larger company will hopefully become a prominent gold developer in terms of both grade and tonnage,” said Derek White, president and CEO of Ascot. “In addition, the company will have experienced people with deep local knowledge and backgrounds in exploration, underground mine development, finance and mining operations, which will ultimately maximize value for shareholders.”

“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,” said Robert McLeod, president and CEO of IDM. “The combined company will control two geological trends hosting significant exploration ground in the Golden Triangle, which remains highly prospective for additional gold-silver discoveries.”

Ascot’s deposits and IDM’s Red Mountain project are located within separate mineralized trends and have separate NI 43-101 mineral resource estimates. The proposed pro forma resource base would include 5.55 million metric tons (mt) of measured and indicated resources, averaging 7.68 grams per mt (g/mt) of gold, totaling 1.37 million oz of gold, with additional inferred resources of 6.35 million mt averaging 7.12 g/mt of gold, totaling 1.45 million oz of gold.

Closing of the transaction is subject to the receipt of applicable regulatory approvals and other customary conditions and it is anticipated to be completed by the end of March 2019.