Canadian companies Treasury Metals and Blackwolf Copper and Gold have announced a merger to advance the Goliath Gold Complex (GGC) project in Ontario towards production with a strengthened leadership, balance sheet and capital markets team.

Mining and capital markets executive Frank Giustra is the largest shareholder of Blackwolf and is expected to be the biggest shareholder of the combined company.

“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. We see the GGC project as buildable and expandable on a district scale,” Giustra commented in a statement.

Based on a 2023 prefeasibility study, the GGC project is poised to produce 109 000 oz/y at an all-in sustaining cost of $1 037/oz over 13 years.

The combined company’s Niblack copper/gold development project in Alaska and other exploration properties also represent promising upside projects for future growth.

Treasury president and CEO Jeremy Wyeth, who is expected to be CEO of the combined company, said the merger was a positive evolution for Treasury.

“With the sponsorship of mining and capital markets leader, Frank Giustra, we will undertake a corporate strategy that continues the advanced-stage development of the GGC project, introduces a more aggressive exploration strategy across the new portfolio and sets the stage for heightened strategic corporate activity,” he said.

Blackwolf CEO Morgan Lekstrom is expected to be president of the combined company.

“This is a tremendous win-win opportunity for Blackwolf and Treasury shareholders. Treasury has done an incredible job of advancing the GGC project through the start of engineering and permitting, and we are optimistic that it can evolve into a major Canadian gold camp,” said Lekstrom.

Pursuant to the terms and conditions of the agreement, the holders of the issued and outstanding shares of Blackwolf will receive 0.607 of a Treasury share for each one Blackwolf share held.

Senior officers and directors of Blackwolf, along with Giustra, collectively holding about 19.13% of its shares, have agreed to support the transaction by voting in favour. Similarly, senior officers and directors of Treasury and certain shareholders collectively holding about 37.03% of its shares, have also entered into voting agreements.

Treasury’s stock surged 17% on the TSX, while Blackwolf’s stock dropped 3.85% on the TSX-V.