Ascot Resources Ltd. agreed to acquire the Silver Coin gold property, a joint venture by Jayden Resources Inc. and Mountain Boy Minerals Ltd., in northwestern British Columbia, according to an Aug. 13 release.
Under the deal terms, Ascot will acquire all of the issued and outstanding shares of Jayden's subsidiary, which owns 80% of the project, in exchange for 14,987,497 common Ascot shares.
In addition, Ascot will issue up to 1,715,684 additional shares to settle the options and warrants exercised before the closing date, with the warrants' net cash proceeds accruing to Ascot.
Ascot will also issue 3,746,874 shares to Mountain Boy, owner of the project's remaining 20% stake, and another 428,921 shares for the settlement of Jayden options and warrants exercisable before closing.
Silver Coin is located 25 kilometers north of British Columbian town Stewart, which is 800 meters away from Ascot's Big Missouri project and just 5 kilometers away from the company's Premier mill facility.
At a cutoff grade of 2 g/t gold, a resource estimate on the advance-stage property outlined indicated resources of 702,000 tonnes grading 4.46 g/t gold, 17.89 g/t silver, 0.88% zinc, 0.33% lead and 0.07% copper; and inferred resources of 967,000 tonnes grading 4.39 g/t gold, 18.98 g/t silver, 0.64% zinc, 0.25% lead and 0.04% copper.