TSRMF - Strategic Merger Forms New Gold Mining Powerhouse | Benzinga
Source: Streetwise Reports 05/13/2024
The newly merged entity will focus on the Goliath Gold Complex, which is nearing production readiness.
Treasury Metals Inc. (OTC: TSRMF) and Blackwolf Copper & Gold Ltd. (OTC: BWCGF) have merged, forming a strategic partnership poised to enhance their production and financial standing in the gold market. The newly merged entity will focus on the Goliath Gold Complex, which is nearing production readiness.
It is expected to produce approximately 109,000 ounces of gold annually at competitive costs. This move is 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.
Financially, the merger strengthens the companies' combined cash reserves, which now exceed CA$10 million, with an additional CA$4 million anticipated from flow-through financing. This robust financial position will support extended exploration and development activities aimed at increasing the companies' gold output and market footprint.
Why Gold?
According to Provident Metals, just as copper bullion is praised for its "distinctive value in the global market due to its industrial business enterprise worth" gold, too, holds an intrinsic value that shields investors during periods of inflation and market downturns.
The narrative surrounding copper, celebrated for its durability and crucial role in industries such as electrical and engineering, mirrors the investment logic for gold.
As copper "yields excellent value to an investor" due to its continuous demand and growth in developing countries like China and India, gold similarly benefits from global economic uncertainties, thereby solidifying its status as a safe-haven asset. Provident Metals points out that diversifying assets with metals like copper can protect and enhance a portfolio, a principle that applies equally to gold, particularly in light of its proven track record of preserving wealth across centuries.
A May 3 report from Red Cloud ...