The Prospector News

Scottie and AUX Announce Merger to Consolidate the Stewart Mining Camp in the Golden Triangle

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Scottie and AUX Announce Merger to Consolidate the Stewart Mining Camp in the Golden Triangle

 

 

 

 

 

Scottie Resources Corp. (TSX-V: SCOT) and AUX Resources Corporation (TSX-V: AUX) (OTC: AUXRF) are pleased to announce that they have entered into a letter of intent dated April 9, 2021 pursuant to which Scottie will acquire all of the issued and outstanding shares of AUX  on the basis of one common share of Scottie for each share of AUX. The Transaction will consolidate the contiguous gold-silver exploration assets of Scottie’s Cambria Project and AUX’s Silver Crown, Independence, American Creek, Lower Bear and Bear Pass Projects, all of which will benefit from operational and geological synergies. Upon completion of the Transaction, it is expected that the shareholders of AUX will hold approximately 31% of Scottie’s issued and outstanding shares.

 

Anticipated Benefits of the Transaction

 

  • District scale 522 km2 100% owned in the heart of the Stewart Mining Camp adjacent to Pretium Resources and Ascot Resources Premier and Red Mountain deposits in the Golden Triangle (Figure 1).
  • Consolidation of AUX’s Silver Crown, Independence, American Creek, Lower Bear and Bear Pass Projects with Scottie’s Cambria Project. The expanded Cambria Project will cover 27,465 contiguous hectares and includes five historical mines (Molly B, Bayview, Black Hills, Blue Grouse and Terminus).
  • Three advanced Projects in the Stewart Mining Camp – Scottie Gold Mine, Georgia (including the Georgia River Mine) and Cambria (including five historical mines). All three Projects will be drilled in the 2021 field season including a 12,500 metre three rig diamond drill program at the Scottie Gold Mine.
  • Scottie’s significant infrastructure in Stewart will provide operational synergies to AUX’s projects.
  • Scottie will be well-capitalized with over $6 million in cash.

 

“Historically the Stewart Mining Camp has operated as a patchwork of small land packages, which unfortunately impedes regional exploration in the area. The extensive and complimentary land positions of Scottie and AUX naturally support consolidation, creating a geological relevant district scale mineral tenure remarkably endowed with historic mineral showings and small-scale past-producing  mines” comments Brad Rourke, Chief Executive Officer of Scottie. “In addition to the land package, merging the companies will create a multitude of operational efficiencies and synergies which will benefit both companies.”

 

“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,” comments Ian Slater, Chief Executive Officer of AUX. “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.”

 

Transaction

 

Pursuant to the terms of the LOI, Scottie will acquire all of the issued and outstanding common shares of AUX on the basis of one common share of Scottie for each common share of AUX held. Warrants and options of AUX will be adjusted or exchanged into warrants and options, respectively, of Scottie.

 

The Transaction is subject to a number of conditions being satisfied or waived by one or both of Scottie and AUX, including concluding a definitive agreement. In the event that a definitive agreement is entered into between Scottie and AUX, and subject to the final Transaction structure, the closing of the Transaction will be subject to additional conditions precedent, including but not limited to, the receipt of AUX shareholder approval, together with any requisite minority approvals, and the receipt of all necessary regulatory approvals.

 

Scottie and AUX are committed to consummating the Transaction in an expedited manner and it is anticipated that the annual and special meeting of AUX shareholders to approve the proposed Transaction will be held in June 2021 and, if approved and all other conditions have been met, it is expected that the Transaction would close shortly thereafter.

 

Further information regarding the Transaction will be contained in a management information circular to be mailed to shareholders of AUX in connection with the special meeting. All shareholders of AUX are urged to read the information circular once available, as it will contain important additional information concerning the Transaction. There can be no assurances that any transaction relating to the Transaction or otherwise will result, or as to the final definitive terms thereof.

 

About Scottie Resources

 

Scottie owns a 100% interest in the high-grade, past-producing Scottie Gold Mine and Bow properties and has the option to purchase a 100% interest in Summit Lake claims which are contiguous with the Scottie Gold Mine property. Scottie also owns 100% interest in the Cambria Project properties and the Sulu property. Scottie Resources holds more than 25,000 hectares of mineral claims in the Golden Triangle.

 

Scottie’s focus is on expanding the known mineralization around the past-producing mine while advancing near mine high-grade gold targets, with the purpose of delivering a potential resource. All of Scottie’s properties are located in the area known as the Golden Triangle of British Columbia which is among the world’s most prolific mineralized districts.

 

About AUX Resources

 

AUX holds more than 27,000 hectares of strategic claims in the Stewart Mining Camp in the Golden Triangle of British Columbia, which is among the world’s most prolific mineralized districts, including the high-grade Georgia Project and the past-producing Georgia River Mine. The Georgia River Mine, which last operated in 1939 with a head grade of 23 g/t gold, contains 1.2 kilometres of underground access on three levels.

 

The technical disclosures in this release have been read and approved by Dr. Thomas Mumford, Ph.D., P.Geo., a qualified person as defined in National Instrument 43-101.

 


Figure 1 – Scottie and AUX combined claims (CNW Group/AUX Resources Corporation)

 

Posted April 12, 2021

Share this news article

MORE or "UNCATEGORIZED"


Alamos Gold Announces Friendly Acquisition of Argonaut Gold

Unlocking Value Through the Creation of One of Canada’s Lar... READ MORE

March 27, 2024

Foremost Lithium Reports Widest Intercept to Date; 32.53 Metres of Spodumene-Bearing Pegmatite at its Zoro Lithium Project in Manitoba, Canada

Highlights Include: Drill hole FL 24-009 intersected 32.53 metres... READ MORE

March 27, 2024

WESTERN COPPER AND GOLD ANNOUNCES METALLURGICAL PROGRAM AND ASSOCIATED DRILL RESULTS

Western Copper and Gold Corporation (TSX: WRN) (NYSE American: WR... READ MORE

March 27, 2024

Endeavour Reports Strong FY-2023 Results

ENDEAVOUR REPORTS STRONG FY-2023 RESULTS Production of 1.1Moz at AISC of... READ MORE

March 27, 2024

Orezone Reports 2023 Year-end and Q4 Results, and Provides 2024 Guidance

Orezone Gold Corporation (TSX: ORE) (OTCQX: ORZCF) reported its o... READ MORE

March 27, 2024

Copyright 2024 The Prospector News