Revival Gold Acquires Ensign Minerals 'To Become A Cash-Flowing Mid-Tier US Gold Producer'

Benzinga ·  Apr 11 08:48

Revival Gold ((OTCQX: RVLGF)) has finalized an all-stock deal worth $21.9 million to acquire Ensign Minerals, a privately held exploration company. This acquisition marks Revival's second gold asset in the United States, solidifying its foothold in the North American gold market at times of high demand for gold, particularly in safe jurisdictions.

"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 Ensign's Chairman and Director, John Knowles.

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Ensign Minerals' flagship Mercur project in Utah's Oquirrh Mountains region boasts significant gold resources. With an inferred resource totaling 89.6 million tons grading 0.57 grams per ton of gold, it holds approximately 1.6 million ounces of contained gold. This estimate, primarily based on work by previous owners on mostly private land, significantly expands Revival's gold resource base to a combined total of 3.8 million ounces inferred, adding to the 2.4 million ounces of measured and indicated resources at Beartrack-Arnett.

"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," stated Revival CEO Hugh Agro.

The acquisition will see Revival issue 61.4 million shares, significantly increasing its outstanding shares. Upon completion, current Revival Gold shareholders will own 65% of the new entity, with former Ensign holders owning the remaining 35%.

Historically, the Mercur district has seen significant gold production, with about 2.6 million ounces mined, including substantial contributions from Getty Oil Company and Barrick Gold (NYSE:GOLD) between 1983 and 1998. While low gold prices at the time forced the mine's closure, the gold's strong performance prompted revisiting of old sites similar to uranium production.

Recently, Ensign's efforts expanded Mercur's project area to cover 62.6 square kilometers, presenting opportunities for exploration and development. Now, Revival Gold can focus on advancing metallurgy, optimizing geological models, and potentially conducting a preliminary economic assessment (PEA) at the site over the next 6–12 months.

With regional proximity offering new synergies, millions in equity financing and existing cash balances, and opportunistic growth potential, this merger is set to create a solid gold producer at a time when yellow metal shines the brightest.

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Also read: Fortuna Silver Mines Highlights Strong Q1 Gold, Silver Production Amid Precious Metal Surge

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