Gold exploration and development company US Gold has closed the acquisition of Nevada-based Northern Panther Resource Corporation in an all-share transaction pursuant to a merger agreement.
Northern Panther's principal asset is the Challis Gold exploration project – an exploration project in Idaho – and it also has $2.5-million in cash. Concurrently with the closing of the merger, several Northern Panther shareholders have led a concurrent financing in which the company received subscriptions for shares of its preferred stock and warrants up to $5.5-million, bringing a total of up to $8-million in additional capital to the company.
"We are acquiring not only an additional high-potential exploration project, but a significant cash balance and some of the industry's leading shareholders, who plan to be very hands-on going forward,” commented US president and CEO Edward Karr.
One of Northern Panther’s shareholders, George Bee, is a seasoned mining industry professional. He was the former president, CEO and director of Andina Minerals and served on the board of Peregrine Metals, which was acquired by Stillwater Mining.
Another notable shareholder is Robert Schafer, who has more than 40 years of exploration and mergers and acquisition experience in both the junior and senior mining sectors.
“The Challis Gold project is located in the western state of Idaho and has, we believe, significant upside exploration potential. USAU shareholders now benefit from exploration and development projects in three of what we believe are the best US states for mining development – Wyoming, Nevada and Idaho," said Kerr.
The Challis gold project is located 75 km southwest of Salmon, Idaho, within the tertiary Challis volcanic field. The project has a historic 43-101 resource of about 313 825 oz of gold at a grade of 1.22 g/t gold, with a potential low strip ratio and exploration upside potential.