TSX-V-listed juniors Scottie Resources and AUX Resources on Monday announced a transaction to consolidate gold/silver exploration assets in the Stewart mining camp in the Golden Triangle of British Columbia.
Pursuant to the terms of the letter of intent, Scottie would acquire AUX for one common share for each AUX common share held.
The transaction would create a “district-scale mineral tenure remarkably endowed with historic mineral showings and small-scale past producing mines”, said Scottie CEO Brad Rourke.
"Historically the Stewart mining camp has operated as a patchwork of small land packages, which unfortunately impedes regional exploration in the area."
The transaction would consolidate AUX’s Silver Crown, Independence, American Creek, Lower Bear and Bear Pass projects with Scottie's Cambria project. The expanded Cambria project would cover 27 465 contiguous hectares and would include five historical mines – Molly B, Bayview, Black Hills, Blue Grouse and Terminus.
The combined business would have three advanced projects – the Scottie gold mine, Georgia, including the Georgia River mine, and Cambria. All three of these projects would be drilled in the 2021 field season, including a 12 500 m, three-rig diamond drill programme at the Scottie gold mine.
AUX CEO Ian Slater concurred that the Stewart camp had been in “desperate need” of consolidation on scale for decades.
“I'm delighted to be part of this compelling new opportunity."
Scottie’s stock closed 5% higher at C$0.20 a share and AUX ended the day 4% lower at C$0.22 a share.