Lodge Resources (CSE: LDG) announced this morning that it has completed the acquisition of the parent company of Lower 48 Resources Ltd, and as a result, that of Lower 48 as well. As a result, Lodge has now acquired the Lemhi Gold project, which is located in Lemhi County, Idaho.
The Lemhi Gold project consists of 99 unpatented claims and 11 patented claims, which collectively have over 10,000 meters of historic drilling. 53 of the unpatented claims are owned directly by Lower 48, and now Lodge, while 46 claims are held subject to an option agreement. The project, located in the Prolific Salmon region of Idaho, significantly expands Lodge’s exploration portfolio.
Currently, there are plans for a work program to occur this year. There are also plans for Lodge to complete a work program on its Comstock property which is located in the Nicola Mining District near Merritt, BC.
In connection with the acquisition of the parent company of Lower 48, Lodge has issued 33,740,000 common shares to the shareholders of Lower 48 in exchange for the shares of Lower 48. These shares are subject to a voluntary lockup agreement, which sees 17.5% of the shares being released on closing, 22.5% released six months after closing, and 30% to be released nine months after closing. The final remaining portion will then be released on the anniversary of the closing of the transaction.
Lodge Resources has also agreed to complete a financing of a minimum of $3.5 million as a post-closing agreement on the transaction. The funds from which will be used to fund exploration on the Lehmi project and working capital.
Lodge Resources last traded at $0.42 on the CSE.
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