Revival Gold Inc. (TSXV: RVG) (OTCQX: RVLGF) closed an acquisition with Ensign Minerals Inc., putting together an Idaho-based multiple property company.
Announced on Friday, Revival closed the deal with Ensign with approximately 61 million shares at $0.3569 per share. The shares were distributed on a pro-rata basis with a share exchange ratio of 1.1667 shares for each of Ensign’s.
Technically, Revival formed the company using a corporate mechanism called a three-cornered amalgamation. This involves three entities—typically two merging companies and a third, which is often a wholly-owned subsidiary of one of the merging companies.
In this arrangement, Revival created a wholly-owned subsidiary, in this case Revival Subco. Ensign then merges with the subco to form a new amalgamated entity, often keeps the name of the target company.
In this case when the transaction closed, Revival Gold became the parent company and sole shareholder of the amalgamated company. The company plans to pursue engineering and economic studies at the newly acquired Mercur Gold Project in Utah, USA, while advancing permitting preparations and ongoing exploration at the Beartrack-Arnett Gold Project in Idaho, USA.
“Our assets in Utah and Idaho comprise approximately 12,000 hectares (almost 30,000 acres) in complementary, proven mining camps, offering excellent infrastructure, exciting exploration potential, and local community support,” Hugh Agro, president and CEO of Revival Gold, said.
“We look forward to providing further updates as work progresses to transform Revival Gold into an emerging heap leach gold producer, with targeted aggregate gold production of 150,000 ounces per year.”
Read more: Idaho offers high value gold options for investors and companies
Read more: U.S. Gold Corp acquires environmental quality permit in Wyoming
Revival Gold is one of the largest gold mine producers
The Beartrack-Arnett Gold Project is situated in Lemhi County, near the town of Salmon, which is approximately 50 miles apart from the Challis Gold Property owned by U.S. Gold Corp (NASDAQ: USAU). Additionally, its close to the DeLamar Project, operated by Integra Resources Corp (TSXV: ITR) (NYSE: ITRG) and the Kilgore Project in Clark County, Idaho, operated by Excellon Resources Inc (TSX: EXN).
The Kilgore Project is an advanced-stage exploration project with significant gold resources.
Another nearby project is the Empire Mine Project in Custer County, Idaho, operated by Phoenix Copper Limited (AIM: PXC) (OTCQX: PXCLF). This historic mine has been a significant producer of gold, copper, and other metals. These projects are all part of the broader region known for its rich gold deposits and active mining operations.
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