Amalgamation Will Consolidate Holdings In BC’s Golden Triangle
Scottie Resources Corp. (TSXV:SCOT) and AUX Resources Corporation have signed an amalgamation agreement pursuant to which a wholly-owned subsidiary of Scottie will amalgamate with AUX and all of the issued and outstanding common shares of AUX following the amalgamation will immediately be exchanged for common shares of Scottie on a one-for-one basis.
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. The board of Scottie will remain the same.
Anticipated Benefits of the Transaction
- District scale 522 sq. km, 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.
- 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 12,500m three rig diamond drill programme at the Scottie Gold Mine.
- Scottie’s significant infrastructure in Stewart will provide operational synergies to AUX’s projects.
- Scottie will be well-capitalised with over C$6 million in cash.
“The 2021 field season will be a transformative one for the combined company as we aggressively advance the total land package with a combined 16,000 metres of diamond drilling coupled with geophysics and property scale geochemical surveys,” Scottie CEO, Brad Rourke, said.
“Due to the complementary land packages, consolidation of Scottie and AUX is a clear value add for shareholders in both companies.”
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 mineralisation 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 mineralised districts.
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 mineralised 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 km of underground access on three levels.