DLT Resolution recently signed a letter of intent to acquire J3M Gold Corporation, a Toronto-based mining company with established operations and subsidiaries across key regions in Chile and Colombia. This proposed acquisition is expected to involve the issuance of common shares from DLT, along with a substantive 52% earn-in interest in J3M’s operations in Chile.
As part of the transaction, DLT and J3M are planning a robust investment of approximately $3 million. This funding is earmarked to enhance and modernize the Las Palmas processing mill and the ancillary mine infrastructure. Under the terms of the agreement, completing this investment will grant DLT a 52% direct interest not only in the mill but also in the associated mining concessions through J3M Gold Chile SpA, thus positioning them strategically in the region’s mining sector.
Currently, the Las Palmas mill boasts a processing capacity of around 250 tonnes per day. However, it is operating at a production rate of between 35 and 38 tonnes per day, indicating significant room for growth with the proposed upgrades. Management has projected that, assuming all conditions are met and the project moves forward, it could yield approximately 10,000 ounces of gold in its first year of full operations.
This transaction includes interests in eight distinct mining concessions, which could further enhance the value proposition for both parties. DLT and J3M have indicated that they anticipate entering negotiations for a definitive agreement over the next 60 days, which will detail the full terms and conditions of the acquisition.
In light of this strategic opportunity, DLT has also announced it will step back from a previously disclosed skincare licensing transaction. This decision aims to reallocate resources and strategic focus to maximize the potential of the J3M acquisition and reinforce its existing operations in the mining sector.
KEY QUOTES:
“The acquisition of J3M Gold Corp will be an excellent way to enter the global gold production industry, right when the gold price is, historically, the highest it has ever been, and gold producer equities are trading at record highs as well.”
Drew Reid, Chairman of DLT Resolution
“J3M Gold Corp is delighted to be joining DLT Resolution Inc. in developing the mines and optimizing the mill.”
Jim Steel, CEO of J3M Gold Corporation
