TSRMF - Meeting Set To Approve Merger Between Gold Cos. | Benzinga
Source: Streetwise Reports 06/11/2024
Blackwolf Copper & Gold Ltd. (OTC: BWCGF) announced that it has filed and mailed materials for a special shareholders' meeting on June 26 to approve its proposed merger with Treasury Metals Inc. (OTC: TSRMF).
The two companies announced the transaction last month, saying they plan to form a strategic partnership to focus on Treasury's Goliath Gold Complex (GGC) in Ontario, which is nearing production readiness.
In a release, the company noted that GGC is expected to produce approximately 109,000 ounces of gold annually at competitive costs, and the merger will also lead to a "renewed exploration commitment."
"The Blackwolf Board of Directors and Special Committee UNANIMOUSLY recommend that Voting Securityholders vote IN FAVOUR of the proposed Arrangement" the company said.
The move was strategically timed to capitalize on the potential rise in gold prices, with some market analysts predicting prices could reach as high as US$3,000 per ounce in the medium term.
Technical Analyst Clive Maund highlighted the positive aspects of the merger between Treasury Metals and Blackwolf on May 2. He said the move is poised to advance the GGC Project significantly.*
"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" Maund wrote. "We see the GGC Project as buildable and expandable on a district scale."
The Catalyst: Analysts Say Deal Benefits Both Cos.
GGC's prefeasibility study (PFS), conducted in February 2023, forecasted 13-year mine life. It anticipates producing 109,000 ounces of gold per year at a cash cost of US$892 per ounce and an all-in sustaining cost (AISC) of US$1,037 per ounce during the first nine years, the company said.
The prefeasibility study projected a net present value (NPV) of US$493 million at a 5% discount rate and an internal rate of return (IRR) of 33.5% based on a gold price of US$1,950 per ounce (gold was US$2,354.82 on Thursday).
There is readily available world-class infrastructure, and a Federal Environmental Assessment approval has been secured. The final feasibility study and permitting processes are currently underway.
As part of the agreement, the two companies, shortly after the ...