Today, Blackwolf Copper and Gold (BWCG.v BWCGF) announced that it has entered into a definitive arrangement to combine with Treasury Metals (TML.v TSRMF) to advance the Goliath Gold Complex Project toward production!
With a strengthened leadership, balance sheet and capital markets team, the highlights of the transaction are as follows:
Potential Near Term Gold Production:
- Based on PFS, the project is poised for production with a forecasted 13-year mine life
- Anticipated production of 109,000 ounces of gold annually at a cash cost of US$892 per ounce
- Projected NPV of $493M at 5% discount rate and IRR of 33.5% based on a gold price of US$1,950 per ounce
- Readily available world-class infrastructure
- Secured Federal Environmental Assessment approval
- Final feasibility study & permitting processes are currently underway
Strong Financial Position:
- Balance sheet will be fortified with a combined cash position of more than C$10M
- Proposed concurrent minimum C$4M flow-through financing
Enhanced Capital Markets Focus
- New captial markets strategy to be led by cornerstone investor Frank Giustra
- Complements significant expertise in mine permitting, construction, operations and exploration to create shareholder value
Renewed Exploration Commitment:
- Exploration efforts expected to be intensified within Dryden, Ontario district, focusing on expanding current resource area
- Experinced team will oversee efforts aiming to simultaneously advance development & exploration, maximizing dual-track value realization
Growth and Consolidation Strategy:
- Actively pursuing proactive strategy to assess & undertake strategic acquisitions, aiming to accelerate growth & strengthen industry position
Pursuant to the Transaction, TML will acquire all of the issued and outstanding common shares of BWCG and, upon completion, existing TML and BWCG shareholders will own ~68.3% and 31.7% of TML respectively.
Jeremy Wyeth, President & CEO of Treasury, and expected CEO of the combined company, commented:
"This combination represents a positive evolution for Treasury. With the sponsorship of mining and capital markets leader, Frank Giustra, we will undertake a corporate strategy that continues the advanced-stage development of the GGC Project, and introduces a more aggressive exploration strategy across the new portfolio and sets the stage for heightened strategic corporate activity."
Morgan Lekstrom, CEO of Blackwolf, and expected President of the combined company, commented:
"This is a tremendous win-win opportunity for Blackwolf and Treasury shareholders. Treasury has done an incredible job of advancing the GGC Project through the start of engineering and permitting, and we are optimistic that it can evolve into a major Canadian gold camp. The combined financial strength and asset portfolio gives us the capital to move into a new stage of growth in a rising gold market. I look forward to working closely with the management team and shareholders, to help the company gain the recognition it deserves."
Frank Giustra, Blackwolf's largest shareholder and expected largest shareholder of the combined company, stated:
"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. We see the GGC Project as buildable and expandable on a district scale. I look forward to continuing to be a supportive shareholder and am excited to join the team as a Strategic Advisor."
Posted on behalf of Blackwolf Copper and Gold Ltd.