BWCG Securityholders Overwhelmingly Approve Merger w/ TML Blackwolf Copper and Gold Ltd. (BWCG.v or BWCGF for US investors) recently entered into a definitive agreement with Treasury Metals Inc. (TML) to merge the two companies.
TML, a gold-focused company, owns the Goliath Gold Complex Project in Northwestern Ontario. Blackwolf holds interests in the high-grade Niblack copper-gold-zinc-silver VMS project in southeast Alaska and five other properties in the Hyder Area of southeast Alaska.
Yesterday, BWCG announced that its securityholders have overwhelmingly approved the proposed acquisition by Treasury Metals Inc. (TML). A final court hearing regarding the transaction is scheduled for tomorrow and the closing of the transaction is subject to customary conditions.
This strategic merger aims to enhance the financial and operational capabilities of both companies. The new entity will manage two advanced projects: TML's Goliath Gold Project and Blackwolf's Niblack Project.
The Goliath Gold Complex Project (GGC Project), as outlined in TML's February 2023 pre-feasibility study, is projected to produce 109,000 ounces of gold annually over a 13-year period.
The project has an estimated net present value of $493 million and an internal rate of return of 33.5%, based on a gold price of US$1,950 per ounce.
The GGC Project is well-supported by existing infrastructure and has received federal environmental approval, with final feasibility studies and permitting currently underway.
Once the transaction is approved, TML will acquire all outstanding shares of BWCG and each Blackwolf shareholder will receive 0.607 TML shares for each of their BWCG shares.
Given that BWCG shareholders will get shares of TML shares at a 0.607:1 ratio, BWCG has been generally trading at a relative discount in comparison to its post-merger value.
Today for example, TML is trading at 20.5c, which means that BWCG should be trading at 12.44c (20.5c * 0.607), yet it is trading at 11.5c.
Additionally, post-merger, the combined company is expected to have a cash balance exceeding C$10 million. Additionally, TML plans to conduct a concurrent flow-through financing to raise up to $6.4 million before finalizing the merger.
The new entity will implement a capital market strategy spearheaded by prominent investor Frank Giustra. This strategy will capitalize on significant expertise in mine permitting, construction, operations, and exploration to enhance shareholder value.
Giustra, who owns 13% of Blackwolf, recently invested $2 million in TML's financing, positioning himself as a major shareholder in the new company.
With the merger between Blackwolf Copper and Gold and Treasury Metals on the precipice of becoming official, stakeholders can anticipate a transformative phase marked by enhanced project development, increased financial stability, and strategic growth opportunities that are expected to drive long-term value creation and solidify the new entity's standing in the mining industry.
Full news here: https://blackwolfcopperandgold.com/news/latest-news/blackwolf-announces-securityholder-approval-of-plan-of-arrangement-2024/
Posted on behalf of Blackwolf Copper and Gold Ltd.