Revival Gold to Acquire Ensign Minerals for $5 Million
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Revival Gold Inc. has entered into a definitive business combination agreement with Ensign Minerals to acquire all of the issued and outstanding shares of Ensign in exchange for an aggregate of 61,376,126 million shares of Revival Gold. The agreement was for aggregate gross proceeds of up to $5 million (C$7 million)
Upon completion of the proposed business combination, Revival Gold will pursue engineering and economic studies at the newly acquired Mercur Gold Project located in Utah while continuing to advance permitting preparations and ongoing exploration at the company’s Beartrack-Arnett Gold Project located in Idaho.
“With the addition of Mercur, we expect to shorten our estimated timeline to heap leach gold production while increasing the potential production scale of Revival Gold’s heap leach gold business to approximately 150,000 ounces per year. The combined mineral resource will vault Revival Gold ahead to become one of the largest, pure gold, development companies in the United States,” said Revival Gold President and CEO, Hugh Agro.
“We are pleased to be entrusted by Ensign’s shareholders with the future development of Mercur. The transaction is a win-win outcome for all concerned creating a clear path for Revival Gold to unlock significant value for shareholders by potentially expediting the path to become a mid-tier open pit heap leach gold producer. With Mercur, Revival Gold will obtain a high-quality complementary project at an attractive acquisition price of about US$10 per ounce in situ. Incorporating an asset that brings forward Revival Gold’s potential production date marks a considerable enhancement to the value, risk profile, and upside for the company,” added Agro.
“Ensign is pleased to join with Revival Gold to deliver value for our respective shareholders in gold. The combined company will feature veteran industry leadership, synergistic and complementary gold assets, and a credible business plan to become a cash-flowing mid-tier U.S. gold producer,” said John Knowles, chairman and director of Ensign.
Revival Gold is a growth-focused gold exploration and development company. The company is advancing the Beartrack-Arnett Gold Project located in Idaho. Beartrack-Arnett is the largest past-producing gold mine in Idaho. The project benefits from extensive existing infrastructure and is the subject of a recent preliminary feasibility study for the potential restart of open pit heap leach gold production operations. Since reassembling the Beartrack-Arnett land position in 2017, Revival Gold has made one of the largest new discoveries of gold in the United States in the past decade. The mineralized trend at Beartrack extends for over five kilometers and is open on strike and at depth. Mineralization at Arnett is open in all directions.
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