West Vancouver-based Lodge Resources (CSE: LDG) announced that it completed the acquisition of all of the shares of 1132144 British Columbia Ltd., the parent company of Lower 48 Resources, which recently acquired the Lemhi gold project located in Idaho.
In a press release, Lodge said that in connection with the acquisition, the company issued 33,740,000 common shares to the shareholders of Lower 48 in exchange for the common shares of Lower 48 on a one for one basis.
Lodge plans to kick off a work program on Lemhi some time this year
The Canadian miner also agreed to complete a financing of a minimum of $3.5 million with proceeds to fund exploration on Lemhi and for working capital.
The project is located in the prolific Salmon region and it comprises 99 unpatented claims and 11 patented claims subject to certain existing encumbrances, which have over 10,000 metres of historic drilling.
“Of the 99 unpatented claims, 53 are owned directly by Lower 48 and 46 claims are held subject to an option agreement with BHLK-2 LLC,” Lodge’s media brief states. “Lower 48 has the right to earn a 100% interest in the claims subject to the option agreement upon making an aggregate of $1,000,000 in payments to BHLK over a seven year period. Upon earning a 100% interest in the optioned claims, BHLK will be granted a 2% net smelter return royalty.”