Vancouver-based First Mining to Acquire Clifton Star Resources

Published: February 15, 2016 |

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First Mining Finance Corp. has agreed to acquire all of the issued and outstanding common shares of Clifton Star Resources Inc. in exchange for one common share of First Mining for each Clifton Star common share held. On completion of the transaction, Clifton Star will become a wholly-owned subsidiary of First Mining and former shareholders of Clifton Star will hold approximately 13.6 percent of the issued and outstanding shares of First Mining.

“The acquisition of Clifton Star provides First Mining an entry point into the Abitibi Region of Québec which is one of the world’s most prolific gold producing regions having yielded almost 200 million ounces of gold. This acquisition also provides First Mining with the financial capability to continue with its aggressive strategy. This transaction also provides an excellent opportunity for shareholders of Clifton Star to be part of our rapidly growing mineral bank which has been well received by the market place,” said Keith Neumeyer, chairman of First Mining.

“The proposed transaction with First Mining results in an excellent premium to Clifton Star shareholders and enables them to benefit from both the ownership in a highly liquid stock and the participation in a diversified gold portfolio of advanced projects in North America. First Mining currently owns resources totaling 7.8 million equivalent ounces of gold, to which we will add our attributable gold ounces from both our Duquesne Project and our 10 percent indirect interest in the Duparquet Project. First Mining is headed by a well-known and experienced management team, keen on growing the company in the future,” said Michel Bouchard, president and CEO of Clifton Star.

BENEFITS OF TRANSACTION

• Results in Clifton Star shareholders having exposure to a leading company with a robust and growing portfolio of assets located in the Americas focusing on gold with an experienced management team with a proven track record of building value;

• Clifton Star shareholders will receive shares of First Mining with a value representing a significant premium to the current market price of Clifton Star shares;

• Diversification from the risks associated with early stage, exploration companies such as Clifton Star whose shareholders will gain access to First Mining’s broad portfolio of assets;

• Provides First Mining with an entry point into Québec by adding two quality gold assets containing close to one million ounces of in-the-ground attributable gold resources:

• A 10 percent indirect interest in the Duparquet Gold Project which, on a 100 percent basis, hosts an NI 43-101 compliant measured and indicated resource of 59.7 million tonnes grading 1.57 Au grams per tonne containing 3.0 million ounces of gold and inferred resources of 28.5 million tonnes grading 1.46 Au grams per tonne containing 1.3 million ounces of gold;

• A 100 percent interest in the Duquesne Gold Project which hosts an NI 43-101 indicated resource of 1.9 million tonnes grading 3.33 Au grams per tonne containing 199,000 ounces of gold and inferred resources of 1.6 million tonnes grading 5.58 Au grams per tonne containing 280,000 ounces of gold; and

• A 100 percent interest in four early stage precious and base metal projects in Québec

• Increases the treasury of First Mining by adding approximately C$11 million in cash, net of transaction costs, at closing which will provide capital to continue additional acquisitions in line with its business strategy; and

• Provides Clifton Star shareholders with shares in a company with an enhanced capital markets presence and a significantly larger market capitalization with a pro forma market capitalization in excess of C$140 million based on current share prices and which has superior trading liquidity.

About First Mining
First Mining is a mineral property holding company whose principal business activity is to acquire high quality mineral assets with a focus in the Americas. The company currently holds a portfolio of 19 mineral assets in Canada, Mexico and the United States with a focus on gold. Ultimately, the goal is to continue to increase its portfolio of mineral assets through acquisitions that are expected to be comprised of gold, silver, copper, lead, zinc and nickel.

To stop by First Mining’s website, CLICK HERE

About Clifton Star Resources
Clifton Star is a junior mining exploration company with a focus on gold and base metal exploration. The portfolio consists of six properties, all in Canada within the prolific Abitibi Greenstone Belt. The Duquesne Project is a past gold producer which produced from 1949 to 1952 and from 1989 to 1991. The projects are all located near existing mining camps with existing power and road infrastructures in mining friendly Québec. Clifton Star has an experienced management team with proven exploration and development achievements.

To stop by Clifton Star Resources’ website, CLICK HERE

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