The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
IDM Mining Ltd. Dec. 8 reported that it has entered a binding agreement to acquire Oban Mining Corp.'s extensive portfolio of precious and base metal properties in the Yukon Territory.
Oban also has agreed to subscribe for 11,111,111 IDM common shares at C9 cents each, for gross proceeds of C$1 million, by way of a non-brokered private placement.
"IDM is excited to welcome Oban Mining as a significant shareholder," said IDM President and CEO Rob McLeod.
The Yukon portfolio consists of 54 properties totaling 308,000 hectares (761,000 acres) of properties that were previously held by Ryan Gold Corp. and its subsidiaries.
Ryan Gold invested roughly C$25 million on exploration at these properties, including drill programs on two of them, as well as tens of thousands of rock and soil samples collected during grass-roots exploration programs in several districts throughout Yukon.
Additionally, geophysical surveys and geologic mapping programs have outlined many anomalous areas that have not received follow-up work.
IDM said it will compile Ryan Gold's work and prioritize the properties for follow-up exploration.
As consideration for Oban's Yukon portfolio, IDM will issue 7,188,889 common shares and grant a 1 percent net smelter royalty over the properties to Oban.
The properties are subject to certain other underlying royalties.
Upon closing, Oban will own 18.3 million IDM shares, or roughly 19.9 percent of the shares of the company and will be entitled to appoint one director to the board of IDM. Oban also will be granted the right to participate in future equity financings of IDM on a pro rata basis to its shareholding immediately prior to any such financing.
In addition, Oban will be granted a 30-day right of first refusal over any royalty or stream agreements that IDM proposes to enter into.
IDM Executive Chairman Michael McPhie said, "The IDM team led by our CEO, Rob McLeod, has had significant exploration success in the Yukon; with Underworld Resources, he and his exploration team discovered the White Gold deposit, leading to the largest staking rush in the Dawson Mining district since the Klondike Gold Rush.
These highly prospective properties from Oban provide another great opportunity to create future shareholder value with IDM." IDM also is earning an option to acquire Red Mountain, an advanced staged gold-silver project in northwestern British Columbia.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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