Consolidating Emerging Canadian Gold Play
Treasury Metals Inc.(TSX: TML) has entered into a definitive share purchase agreement with First Mining Gold Corp. under which it will acquire all of the issued and outstanding shares of First Mining’s wholly-owned subsidiary Tamaka Gold Corporation.
Tamaka owns a 100% interest in the Goldlund Gold Project, located adjacent to Treasury’s Goliath Gold Project in Northwestern Ontario.
Goldlund hosts a large near-surface gold resource estimated to contain 809,200 ounces of gold in the Indicated category, plus 876,954 ounces of gold in the Inferred category within a 280 sq. km property package located directly to the Northeast of Goliath.
Treasury CEO and Director, Greg Ferron, said the close proximity of the projects, combined with well-developed infrastructure in the region, is expected to generate substantial co-development synergies as the properties are advanced in tandem.
“We are excited to bring about the amalgamation of our two adjacent gold assets located in one of the world’s top mining jurisdictions with gold trading near all time highs in Canadian dollar terms, our operating currency,” Mr Ferron said.
“This combination recognises the advanced stage of Goliath with a completed Federal EA, and importantly will result in significant synergies between the Goliath-Goldlund deposits and greater development flexibility owing to the scale and proximity of resources at Goldlund.
“Upon completion of the Transaction, the company looks forward to discussions with Indigenous and community partners to aid in the responsible development of these exciting projects.”
Transaction Highlights
- Consolidation of two adjacent gold assets, allowing for numerous potential co-development opportunities within an infrastructure-rich area of Northwestern Ontario.
- Combined resource base of 2.0 million ounces of gold in the Measured & Indicated categories, plus an additional 1.1 million ounces of gold in the Inferred category (refer to resource disclosure for both projects at the end of this release), solidifying the Goliath-Goldlund project as among the largest undeveloped gold assets in Canada.
- Enhanced focus on near-surface resources in tandem, including a +140% increase in M+I resources amenable to open pit mining methods.
- High probability of future operational synergies, with only a 2 km distance between property boundaries.
- Exposure to a large and highly prospective land package at Goldlund, with potential to further expand resources through additional exploration along a combined 65 km strike-length within a 330 km2 consolidated land package, including First Mining’s newest discovery at the Miller prospect and Treasury’s recent C Zone East expansion success.
- Transformative scale to enhance investor visibility and positioning amongst peers, plus a broadened shareholder base.
Treasury’s Goliath project has received environmental assessment (EA) approval by the Federal Government of Canada, and provincial permits are advancing.
