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IDM Mining Wins Shareholder Nod for Ascot Resources Buyout.

M2 EQUITYBITES-March 25, 2019-IDM Mining Wins Shareholder Nod for Ascot Resources Buyout


25 March 2019 - Shareholders of Canadian gold miner IDM Mining Ltd. (TSX Venture: IDM) (OTCQB: IDMMF) have approved the company's deal to be acquired by Ascot Resources Ltd. (TSX.V: AOT) (OTCQX: AOTVF)

In January, the companies announced they had entered into a definitive arrangement agreement pursuant to which Ascot will acquire all of the issued and outstanding common shares of IDM.

Each IDM shareholder will be entitled to receive 0.0675 of a common share of Ascot for each share of IDM held.

The transaction will consolidate Ascot's Premier Gold project and IDM's Red Mountain project, to create the leading high-grade gold development and exploration company in northwestern British Columbia's Golden Triangle.

The combined entity will benefit from numerous operational and development synergies.

This consideration values IDM at approximately CDN 0.086 per share, representing a premium of approximately 54% to IDM shareholders based on the trailing 20-day volume weighted average price of each company as of the close of trading on January 4, 2019.

Upon completion of the transaction, it is expected that IDM shareholders will hold approximately 16.7% of Ascot shares on an outstanding basis.

The combination of the two companies will result in a compelling resource base of high-grade measured and indicated gold-silver resources positioning Ascot as a consolidator of the southern Golden Triangle.

Haywood Securities Inc. is acting as financial advisor and Blake, Cassels and Graydon LLP is acting as legal counsel to Ascot.

Raymond James Ltd. is acting as financial advisor and DuMoulin Black LLP is acting as legal counsel to IDM. Borden Ladner Gervais LLP is acting as legal counsel to IDM's Special Committee.

Raymond James Ltd. and Cormark Securities Inc. each provided a fairness opinion to IDM's Special Committee and board of directors indicating that the Arrangement is fair from a financial point of view to the shareholders of IDM subject to the assumptions, limitations and qualifications set out in such fairness opinion.

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Publication:M2 EquityBites (EQB)
Date:Mar 25, 2019
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