Treasury Metals Blackwolf gold North America

The combined financial strength and asset portfolio provides the capital to move into a new stage of growth.

Treasury Metals Inc. announced that they have entered into a definitive agreement dated May 1, 2024 to combine the two companies to advance the Goliath Gold Complex project in Ontario toward production with a strengthened leadership, balance sheet and capital markets team.

The combined company’s Niblack Copper-Gold development project in Alaska and other exploration properties also represent promising projects for future growth.

Transaction Highlights:

  • Near-term gold production potential: Based on a pre-feasibility study conducted in February 2023, the GGC Project is poised to enter production with an expected mine life of 13 years. It anticipates producing 109,000 ounces of gold annually at a cash cost of $892 per ounce and an all-in sustaining cost (AISC) of $1,037 per ounce for the first nine years. The prefeasibility study projected a net present value (NPV) of $493 million with a discount rate of 5% and an internal rate of return (IRR) of 33.5% based on a gold price of US$1,950 per ounce. . The project benefits from readily available world-class infrastructure and has obtained Federal Environmental Assessment approval. The final feasibility study and permitting processes are currently underway.
  • Strong Financial Position: The balance sheet will be strengthened with a combined cash position of over C$10 million, plus a proposed concurrent minimum flow financing of C$4 million.
  • Enhanced Focus on Capital Markets: The new capital markets strategy to be led by fundamental investor Frank Giustra complements significant experience in mining permitting, construction, operations and exploration to create value for shareholders.
  • Renewed Exploration Commitment: Exploration efforts are expected to intensify within the Dryden District, Ontario, focusing on expanding the current resource area. An experienced team will oversee these efforts, with the goal of simultaneously advancing development and exploration, maximizing dual-track value realization.
  • Growth and Consolidation Strategy: Companies are actively pursuing a proactive strategy to evaluate and undertake strategic acquisitions, with the aim of accelerating growth and strengthening their position in the industry.

Pursuant to the Transaction, Treasury will acquire all of the issued and outstanding common shares of Blackwolf. Under the terms of the Agreement, each BWCG share will be exchanged for 0.607 TML shares. Upon completion of the transaction, existing shareholders of TML and BWCG will own approximately 68.3% and 31.7% of TML respectively.

Jeremy Wyeth, CEO of the combined company, commented that this combination represents a positive development for the Treasury.

“With the sponsorship of mining and capital markets leader Frank Giustra, we will undertake a corporate strategy that continues the advanced stage of development of the GGC project and introduces a more aggressive exploration strategy across the new portfolio and sets the stage for further corporate strategy,” he said.

Morgan Lekstrom, CEO of Blackwolf and expected chairman of the combined company, commented that this is a tremendous win-win opportunity for Blackwolf and Treasury shareholders.

Treasury has done an incredible job advancing the GGC project from the start of engineering and permitting, and we are optimistic that it can evolve into a major Canadian gold field. The combined financial strength and asset portfolio provides us with the capital to move into a new stage of growth in a rising gold market.

“I look forward to working closely with the management team and shareholders to help the company gain the recognition it deserves,” he said.

Frank Giustra, Blackwolf’s largest shareholder and expected largest shareholder of the combined company, stated that this is a solid transaction for Blackwolf and Treasury shareholders that puts the company on the path to a buy-and-build strategy that has been implemented many times. times.

“We consider that the GGC Project is buildable and expandable on a district scale. “I look forward to remaining a supportive shareholder and am excited to join the team as a strategic advisor.”

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