Mining the Northwest: Treasury Metals goes big to get noticed – by Ian Ross (Northern Ontario Business – May 14, 2024)

Dryden mine builder picking up copper, gold property in Alaska to gain equity market recognition

Dryden-area mine developer Treasury Metals is out to create a project pipeline with its proposed acquisition of Blackwolf Copper and Gold, owner of the Niblack project in Alaska.

The developer of the Goliath Gold project announced earlier this month that it had signed a definitive arrangement agreement with Blackwolf that would see the two companies merge this summer. In a news release, Treasury said this merger will be beneficial in helping to advance its main Goliath Gold project toward production, east of Dryden.

According to terms of the deal, Treasury will acquire all of the issued and outstanding shares of Blackwolf. A Blackwolf share will be exchanged for 0.607 of a Treasury share. When the merger is complete, Treasury and Blackwolf shareholders will own 68.3 per cent and 31.7 per cent, respectively, of the new company.

The merger is expected to close during this year’s third quarter. To create some financial wiggle room, Treasury has revised an agreement with a lender, Sprott Resources Streaming and Royalty, deferring quarterly minimum payments for the next four quarters.

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