AUX Resources (TSXV: AUX) this morning had a major announcement. The firm has seen its shareholders approval the previously announced merger with that of Scottie Resources (TSXV: SCOT), enabling the amalgamation to proceed as planned.
The transaction itself will see shareholders of AUX receive one share of Scottie for every share of AUX held. The transaction is slated to be performed on an all-stock basis. Following the transaction, AUX will become a wholly owned subsidiary of Scottie, with the company expected to further consolidate its landholdings in the region.
The transaction is significant for the region, given the extensive land holdings of the two firms, which now become contiguous. Post-merger, the firm will see Scottie’s Cambria project amalgamated with AUX’s Silver Crown, Independence, American Creek, Lower Bear and Bear Pass projects, which is expected to result in operational synergies. The result, is a district scale operator with a total size of 522 square kilometres located in the heart of the Stewart mining camp, of which the Cambria project amounts to 274.7 square kilometres.
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The transaction itself is expected to close on July 16, 2021, with AUX to be delisted from the TSX Venture on July 14, in advance of the transaction closing.
AUX Resources last traded at $0.215 on the TSX Venture.
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