Treasury Metals to acquire Giustra’s Blackwolf Copper and Gold

Share this article

Treasury Metals Inc. [TML-TSX], TSRMF-OTCQX] has signed a definitive deal to acquire Blackwolf Copper and Gold Ltd. [BWCG-TSXV, BWCGF-OTCQB] in a bid to advance the Goliath Gold Complex in northwestern Ontario towards production.

The combined company’s Niblack Copper-Gold development project in Alaska (currently a 100% Blackwolf-owned asset) and other exploration properties also represent promising upside for future growth.

Under the agreement, Treasury will acquire all the issued and outstanding shares of Blackwolf, with each Blackwolf share being exchanged for 0.607 of a Treasury Metals share. Upon completion, existing Treasury Metals and Blackwolf shareholders will own 68.3$ and 31.7% of the combined company (after closing and prior to the completion of a non-brokered private placement that is expected to raise $4.0 million from the sale of 17.4 million flow-through units priced at 23 cents per unit. Each unit will consist of one common share that will be issued as a flow through share and one common share purchase warrant, each of which can be exercised at a price of 35 cents for 36 months following the closing of the concurrent financing).

Blackwolf shares advanced on the news, rising 7.7% or $0.01 to 14 cents. The shares trade in a 52-week range of 40.5 cents and $0.085. Treasury Metals shares were unchanged at 20 cents and trade in a 52-week range of 32.5 cents and 11.5 cents.

“This is a strong transaction for Blackwolf and Treasury shareholders that puts the company on the path of a buy and build strategy that I have implemented many times,’’ said Frank Giustra, Blackwolf’s largest shareholder, and expected largest shareholder of the combined company. “We see the GGC (Goliath Gold Complex) as a buildable and expandable on a district scale.’’

Back in February, 2023, Treasury Metals announced the results of a National Instrument 43-101-compliant pre-feasibility (PFS) study for ts Goliath Gold Complex, which includes the Goliath, Goldlund and Miller deposits.

The PFS forsees average annual production of 90,000 announces annually, with peak production increasing from 119,000 ounces to 128,000 ounces (year 2).

The pre-feasibility study is based on proven and probable reserves of 1.3 million ounces of gold (30.3 million tonnes at 1.3 g/t gold). The estimate for initial capital is pegged at $335 million, including a 30% increase to process plant capacity compared to the PEA, with life of mine capital of $552 million.

Sprott Resources Streaming and Royalty Corp. have agreed to modify the terms of an agreement dated April 11, 2022, whereby Sprott Streaming will forego receiving the quarterly minimum payments under the terms of the agreements for the next four quarterly payments. In exchange, the quarterly minimum payments will increase to US$675,000 and the last date of payment will be the earlier of the declaration of commercial production or January 11, 2028.

Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *