The combined company will hold more than 15 projects covering an area of over 1,260km2 in Canada’s Red Lake mining district
Trillium Gold Mines and Pacton Gold have agreed to a merger deal with the intent to become a major land holder in the Red Lake mining district in Ontario, Canada.
As per the terms of the agreement, the Canada-based publicly listed firms will combine on an at-market basis. Each Pacton Gold common shareholder will receive 1.275 Trillium Gold shares in exchange for each Pacton Gold common share held.
Following the completion of the transaction, current Trillium Gold and Pacton Gold shareholders will own 53% and 47% of the combined firm, respectively.
The combined company will hold more than 15 projects covering an area of over 1,260km2 in the Red Lake district.
Pacton Gold president, CEO, and director Nav Dhaliwal said: “The combination of Trillium and Pacton represents an all too rare outcome in our sector – real synergy.
“Our projects are proximal, our corporate philosophies are consistent and cost efficiencies will be realised.
“The new company shall be properly diversified and well positioned to achieve exploration success, while putting under one roof an extensive land position that we expect will present strategic value to other players in the industry.”
Through the merger, Trillium Gold and Pacton Gold hope to achieve material cost savings and synergies from the consolidation of corporate overheads and exploration programmes across the Red Lake mineral district.
The combination will result in the increase of Trillium Gold’s land holdings in the Red Lake district by more than 36,000 hectares.
Trillium Gold will add Pacton Gold’s Red Lake Gold Project, which spans 28,000ha. The former will also secure Pacton Gold’s 46.7% interest in the Sidace project, which spans 8,600ha.
For Pacton Gold, the merger will give ownership in a more diversified gold exploration firm with exposure to more than 89,600ha of prospective properties in the Red Lake mining district.
Trillium Gold president, CEO, and director Russell Starr said: “This combination literally changes the map of the prolific Red Lake Mining District. With the addition of Pacton’s neighbouring projects, Trillium will become the leading strategic landholder in the region.
“With over 1,260 km2 of prospective ground, we will effectively increase and diversify our opportunities, while realizing financial and operating synergies.
“Being the most dominant and strategic land holder in the jurisdiction for gold, we will also seek to leverage the lithium and critical element opportunities that exist throughout the combined land package.”
The boards of directors of both the firms have unanimously approved the deal, which will be subject to Pacton Gold’s shareholders’ approval, and court and regulatory approvals.