Benchmark Metals (TSXV:BNCH) has a strong record of evaluating and advancing mining projects from inception to production.
The mineral exploration company is keenly focused on its Lawyer’s Gold and Silver project which is 100 per cent owned by the company. Currently, the company is moving swiftly along, heading towards completion of its environmental baseline program.
TMH: Some exciting news for the company just came out. There has been a merger between Benchmark and Thesis Gold, creating one of the largest precious metals developments and exploration companies in the Toogoddone Mining District. What should people know about this and there should be a P-E-A to follow, correct?
JG: That’s right. Yeah. This is truly a transformative event. By combining the two companies, we double our land package. We create an additional 20 new targets to grow ounces. And in addition to that there’s a resource that will be forthcoming on the Thesis ground, which will add to the preliminary economic assessment. So, it’s one of those cases where there’s two companies that are adjacent to one another and connected by road, and it should turn out to be a one plus one equals three scenario.
TMH: Tell us more about the strategic rationale behind this transaction.
JG: Yeah, the main reasons (are) you know, we’re trying to create a golden silver mine that has potential to reach in excess of 200,000 ounces per year. And with the addition of new ounces to come from Thesis, this will push us to a new threshold but also extend the mine life. So, this has the earmarks of becoming a large world-class gold and silver mine in the near future.
TMH: More specifically, can you dive into what this merger means financially for the company? What has Benchmark gained?
JG: Yeah, the combined treasuries between Thesis and Benchmark sets the cast position near $30 million Canadian. So it puts us in a very good position to complete all work through 2023 without having to go back to market and dilute the stock. So very strong treasury wise, but also the combined teams are truly world-class. Once again, some world-class explorationists on the Thesis side join with some mine developers on the Benchmark side creates an effective and strong team.
TMH: As for the shareholders, how will this increase their value now that the companies have combined?
JG: The combined effort should equate to a much larger market cap. I would expect once the deal concludes in early August and generally in September, October, you see metals markets run much better. I think you’ll see multiples made on this market cap and shareholders should get a good win out of this new combined effort.
TMH: Is there anything you would like to add before we let you go?
JG: As milestones to come here, we’re aiming towards an August completion of the merger. Drilling will begin soon in the next few weeks and run right through September. And following the drilling you’ll see a new global combined mineral resource estimate, and that will feed into a brand-new economic study. A lot of events to happen over the next 12 months, and all of that should help build the value in this new combined story.
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