Leveraging Purchasing Power with TML & BWCG MergerCreating a strong and more diversified company, Treasury Metals (TML.v TSRMF) anticipated to merge with Giustra-backed Blackwolf Copper and Gold (BWCG.v BWCGF).
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.
More specifically, BWCG shareholders will get 0.607 share of TML for every 1 share of BWCG, meaning that BWCG is usually trading at a discount to the intrinsic value post merger, allowing investors to leverage purchasing power.
With a fortified balance sheet and combined cash position of more than C$10M post merger, cornerstone investor Frank Giustra will be leading a new capital market strategy, TML's current president and CEO will become the CEO and BWCG's CEO will be appointed as president.
Significantly, Giustra is a major shareholder of both companies, having just subscribed for $2M in TML's latest financing , making him a significant shareholder with ofer 10% of TML, alongside owning 13% of BWCG.
Near-Term Gold Production Potential
Result in significant benefits to investors, this deal provides shareholders with the potential for near term gold production from the Goliath Gold Complex, which has a projected NPV of $493M at 5% discount rate and IRR of 33.5% based on a gold price of US$1,950 per ounce.
Currently at a PFS share with environmental approval, the anticipated production from the project is 109,000 ounces of gold annually at a cash cost of US$892 per ounce with a 13 year mine life.
Technical analyst Clive Maund, highlighted the positive aspects of the merger saying:
"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."
For more information, refer to Streetwise Reports coverage of this merger:
https://youtu.be/ekh3HV4aYhw?si=g5oVdTe85IVSYunR&t=8299 Posted on behalf of Blackwolf Copper and Gold Ltd.