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StrikePoint Gold to acquire IDM Mining's Yukon properties for C$4M

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StrikePoint Gold to acquire IDM Mining's Yukon properties for C$4M

IDM Mining Ltd. and StrikePoint Gold Inc. signed a nonbinding letter of intent, under which StrikePoint agreed to acquire IDM's portfolio of properties in Canada's Yukon Territory for C$4.0 million in cash and shares, the companies said in separate Dec. 21 statements.

The portfolio consists of 14,078 claims over 27 properties, totaling 282,000 hectares. The properties were previously held by Ryan Gold Corp., and cover multiple tectonic and metallogenic environments as well as a variety of mineral deposit styles common in Yukon Territory.

In accordance with the terms of the LOI, the consideration will be settled through a C$150,000 cash payment and the issuance of 10 million common StrikePoint shares valued at 38.5 Canadian cents apiece, for a total of about C$3.9 million.

StrikePoint will also be required to incur C$1.5 million in exploration expenditures over the properties by Dec. 31, 2017, and pay any deficiency to IDM. Meanwhile, IDM will be granted certain anti-dilution rights, the right to appoint two members of StrikePoint's board and a right of first refusal over any proposed divestment of the properties during the two-year period after the transaction's closing.

The companies are set to execute the definitive agreement for the sale by Jan. 12, 2017, and StrikePoint will be required to pay a C$25,000 nonrefundable cash deposit to be credited against the cash payment.

Closing is expected on or before Feb. 28, 2017, and the deal remains subject to certain conditions including regulatory and shareholder approvals from both companies.