TSRMF - Copper-Gold Co.s Both Rated Strong Buys Ahead of Merger | Benzinga
Source: Clive Maund 06/26/2024
This year, Blackwolf Copper & Gold Ltd. (OTC: BWCGF) and Treasury Metals Inc. (OTC: TSRMF) signed a merger deal to combine the two companies to advance the Goliath Gold Complex project (GGC project) in Ontario toward production with a strengthened leadership, balance sheet, and capital markets team with the merger expected to complete on July 3.
The combined company's Niblack copper-gold development project in Alaska and other exploration properties also represent promising upside projects for future growth. The benefits of this merger can be summarized as the synergies produced by the companies combining their assets, expertise, and experience, as well as the resulting economies of scale as they combine forces.
The combined company weill aspire to mid-tier producer status and move in this direction through strategic acquisitions under the guidance of key investor Frank Giustra. The expected cash position of $16 million after the merger will allow the company to execute on its development and exploration plans thus realizing value and increase mineable resources at the Goliath Gold Complex in Ontario, final permits for which are in process.
After the merger, TML shareholders will own approximately 68% of the new company, which will be called NexGold, while BWCG shareholders will own approximately 32%. BWCG shareholders will swap in their shares at a ratio of 0.607% TML shares for each BWCG share held, while options and warrants will convert at the same ratio, i.e., 1-for-1.
In furtherance of the transaction, Treasury Metals is doing a financing, which has been raised to $6.4 million at a unit price of 23 cents, which is very near to what the shares are now priced at, and Frank Giustra will be taking $2 million of them which is viewed as a positive indication as is the upscaling of this financing from a minimun of $4 million to $6.4 million. TML shares are therefore regarded as attractive here being as they are near to the issue price of the financing. Following the merger, there will be a 1-for-4 consolidation or reverse split of the stock.
The following map gives an overview of the combined company's assets, and in terms of revenue-generating power, the Goliath Gold Camp is clearly the most important as it is well along the road to becoming a significant gold producer, in addition to which it holds significant potential for further exploration and expansion of the resource.
The Goliath Gold Camp is in a prolific gold bearing zone in Ontario and is surrounded by an impressive array of mines and prospects with big players involved like Kinross Gold Corp. (NYSE: KGC) and New Gold Inc. (AMEX:NGD).
The following slide gives an overview of the Goliath Gold Complex and also shows a bulleted list of the 2023 pre-feasibility study highlights.
This one provides a summary of the PFS highlights.
Turning now to the combined company's other properties over in the west, in Alaska and British Columbia, the following slide makes glaringly obvious the potential of the Hyder property in The Golden Triangle since it is very close to significant properties owned by other important mining companies such as Dolly Varden Silver Corp. (OTC: DOLLF), Hecla Mining Co. (NYSE: HL), Newcrest Mining Ltd. (OTC: NCMGF), and Scottie Resources Corp. (OTC: SCTSF), to name just some of them.
After noting the position of the company's Niblack property on the slide above, just across the border to the west in SE Alaska, the ...