Treasury Metals, a Canadian mineral exploration company, has reached an agreement to buy the compatriot company Blackwolf Copper and Gold (BWCG), owner of the Niblack project in Alaska. The merger of these two businesses is expected to help Treasury move toward production from the Goliath Gold Complex (GGC) project in Ontario. The GGC project, together with the Niblack copper-gold development project and other exploration properties, represents significant growth potential for the combined company.
Blackwolf Copper and Gold Acquisition
Under the agreed terms, Treasury will acquire all issued and outstanding shares of Blackwolf, with each Blackwolf share being exchanged for 0.607 Treasury shares. Following the merger, Treasury and Blackwolf shareholders will own approximately 68.3% and 31.7% of the merged entity, respectively. The merger is expected to meet the approval of Blackwolf shareholders, including key investor Frank Giustra and other top executives.
Merger objectives
This merger aims to drive the GGC project, located within the Wabigoon green shale belt, into production, leveraging a strengthened cash balance sheet of C$10m ($7.32m) and a new capital markets strategy. The project includes an open pit and underground gold mine with a processing facility, which received federal environmental approval in 2019. The final feasibility study and permitting processes are currently underway.
Development and financing plan
In addition to GGC, Treasury aims to develop the Niblack project, acquired by Blackwolf through an option agreement with Teck Resources in 2006. In parallel with the merger, Treasury plans a private placement of nearly 17.4 million units priced at C $0.23 each to raise C$4m. Each unit will include one common share and a bond exercisable at C$0.35, with the funds earmarked to advance the GGC project and certain exploration programs. Jeremy Wyeth, current president and CEO of Treasury, is expected to take over as CEO of the combined company, while Morgan Lekstrom, CEO of Blackwolf, is expected to take over as president.
GGC project promotion
Wyeth is expected to take the reins of the combined company as its CEO, while Blackwolf CEO Morgan Lekstrom is expected to assume the role of president. Wyeth is expected to take over as CEO of the combined company, while Blackwolf CEO Morgan Lekstrom is expected to take over as president. This combination represents a positive development for Treasury, as they will have the support of mining and capital markets leader, Frank Giustra, and will be able to continue the advanced development of the GGC project and a more aggressive exploration strategy.
