BWCG.v and Treasury Metals' Strategic Merger Proposal Blackwolf Copper and Gold Ltd. (BWCG.v or BWCGF for US investors) has proposed a merger with Treasury Metals Inc. (TML), whereby TML will acquire all outstanding shares of Blackwolf. Each Blackwolf shareholder will receive 0.607 TML shares for each share they own.
Because Blackwolf shareholders will get shares of TML at a 0.607:1 ratio, shares of BWCG on most trading days have been trading at a relative discount to the intrinsic value post merger. For example, TML is currently trading at 24.5c, which means that BWCG should be trading at 14.87c (24.5c * 0.607), yet BWCG is trading at 13c.
Overall, this strategic merger aims to bolster both companies' financial and operational strengths. The combined company will have 2 advanced projects, TML's Goliath Gold Project and BWCG's Niblack Project.
Key expected benefits of the merger include:
Impending Gold Production: The Goliath Gold Complex Project (GGC Project), according to TML's February 2023 pre-feasibility study, is set to produce 109,000 ounces of gold annually over a 13-year lifespan. The project boasts a net present value of $493 million and an internal rate of return of 33.5%, assuming a gold price of US$1,950 per ounce. The project benefits from established infrastructure and federal environmental approval, with final feasibility and permitting in progress.
Robust Financial Standing: Post-merger, the combined entity will have a cash position exceeding C$10 million. Additionally, TML plans to conduct a concurrent flow-through financing to raise up to $6.4 million before completing the merger.
Focused Capital Market Strategy: A new capital market strategy, led by cornerstone and prolific investor Frank Giustra, will leverage significant expertise in mine permitting, construction, operations, and exploration to enhance shareholder value. Giustra owns 13% of BWCG, and recently subscribed for $2M in TML’s financing, setting himself up to become a significant shareholder of TML as well.
Enhanced Exploration Initiatives: The merger will intensify exploration efforts in the Dryden, Ontario area, with a focus on expanding the current mineral resource base. An experienced team will oversee these efforts to advance both development and exploration.
Growth Through Strategic Acquisitions: The combined entity will pursue strategic acquisitions to accelerate growth and solidify its industry standing.
Experienced Management Team: The management team will integrate the proven expertise and track records of both companies, enhancing capabilities in mining development, operations, finance, exploration, and community relations.
Approval for the merger will be sought from Blackwolf's shareholders and option holders at a special meeting on June 26, 2024. The Blackwolf Board of Directors and Special Committee unanimously recommend that stakeholders vote in favor of the arrangement
Full news here: https://blackwolfcopperandgold.com/news/latest-news/blackwolf-mails-and-files-special-meeting-materials-in-connection-with-the-proposed-plan-of-arrangement-with-treasury-metals-inc/
Posted on behalf of Blackwolf Copper and Gold Ltd.