Aux Resource Corp (TSXV: AUX) is set to be acquired by that of Scottie Resource Corp (TSXV: SCOT). The two firms announced this morning that they have entered into a letter of intent for a merger that will see AUX shareholders own 31% of the resulting company.
The all share transaction will see shareholders of AUX receive one common share of Scottie for each share held. The justification of the merger is the consolidation of the gold-siler exploration assets held by the two firms in the Golden Triangle of British Columbia.
The proposed merger will see the consolidation of Scottie’s Cambria project with that of AUX’s Silver Crown, Independence, American Creek, Lower Bear, and Bear Pass projects. The transaction as a result is to result in a district-scale 522 square kilometres of claims within the Stewart gold camp. The consolidated property, to be known as the Cambria project, is to cover 27,465 contiguous hectares as well as five historical mines as a result, while the company as a whole will have three projects in the Stewart camp – Scottie Gold Mine, Georgia, and Cambria. All three properties are set to be drilled in the 2021 field season.
“This unique corporate combination creates an exciting gold-silver explorer with seven historic mines and over 500 km2 of claims in the heart of one of Canada’s most prolific mining camps. The Stewart Camp has been in desperate need of consolidation on this scale for decades. I’m delighted to be part of this compelling new opportunity.”Ian Slater, CEO of AUX Resources
The transaction is subject to the signing of a definitive agreement between the two firms. The transaction is expected to be put forth to AUX shareholders at their annual meeting in June 2021, with the transaction expected to close shortly thereafter if approved.
AUX Resources last traded at $0.23 on the TSX Venture.
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