Odin Mining to Acquire Ecuador Gold and Copper

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Odin Mining and Exploration Ltd. [ODN-TSXV] and Ecuador Gold and Copper Corp. [EGX-TSXV] have entered into a definitive arrangement agreement, dated August 2, 2016, whereby Odin will acquire all of the outstanding securities of EGX.

Vancouver based, Odin Mining has the Cangrejos gold project in El Oro province, southern Ecuador, 30 km southeast of the port city of Machala which Odin Mining identified as the source of the Biron alluvial gold deposit which yielded 69,000 ounces.

Ecuador Gold and Copper’s Condor Project is located in the Province of Zamora-Chinchipe also in southern Ecuador, 31 km south of Lundin Gold’s 13.7 million ounce Fruta del Norte Project.

The Condor Project contains an indicated mineral resource of 8.012 million ounces gold, 28.545 million ounces silver and 0.8 billion pounds of copper (within 447.28 million tonnes grading 0.55 grams/tonne gold, using a 0.25 grams/tonne gold cut-off).

Additionally an inferred mineral resource of 2.60 million ounces gold, 9.125 million ounces silver and 0.4 billion pounds of copper (within 197.6 million tonnes grading 0.4 grams/tonne gold, using a 0.25 grams/tonne gold cut-off).

The Condor Project also contains a second inferred mineral resource of 1.1 billion lbs of copper (within 161.0 million tonnes grading 0.31% copper, using a 0.2% copper cut-off).

Odin Mining has agreed to acquire EGX by way of a statutory plan of arrangement. The plan of arrangement will result in Odin being owned approximately 65% and 35% by Odin and EGX’s existing shareholders, respectively. The resulting entity will be an emerging gold exploration company with a post-deal market capitalization of approximately CDN $198 million (based on the closing price of Odin’s shares on August 2, 2016).

“We are excited about the highly prospective gold and copper exploration and development opportunities this deal represents. With an established multi-million ounce indicated gold resource as a platform to build on, combined with an experienced management team with strong finance capabilities this deal represents a unique investment opportunity for Odin and EGX shareholders.” said Marshall Koval, Odin’s Chief Executive Officer.

Heye Daun, EGX’s Chief Executive Officer commented “The combination of our Ecuadorean assets and shareholders, coupled with Odin’s financial and project development expertise represents an excellent fit that will enable us to develop our projects in Ecuador.”

The proposed acquisition must be approved by the Supreme Court of British Columbia and the affirmative vote of 66 2/3 % of EGX shareholders. The boards of directors of Odin and EGX have unanimously approved the transaction.

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