Trillium Gold Mines Inc (TSX-V:TGM, OTCQX:TGLDF) told investors that shareholders of Pacton Gold Inc. (TSX-V:PAC) have approved a plan to merge the two companies to create a leading gold explorer and dominant strategic landholder with over 15 projects covering 1,260 km2 in Northern Ontario’s prolific Red Lake Mining District.
The company said in a statement that the shareholder approval, which will result in Pacton becoming a wholly-owned subsidiary, followed the Supreme Court of British Columbia’s final order approving the deal on June 6, 2023.
The companies noted that the merger will result in a company with property holdings larger than major gold producers in the district such as Evolution Mining Limited and Kinross Gold Corporation (TSX:K).
It is also expected to lead to material cost savings and synergies from the consolidation of corporate overheads and exploration programs, while the larger combined market capitalization and expanded institutional investors base will enhance trading liquidity in the company’s stock.
Under the terms of the deal, Pacton shareholders will receive 1.275 Trillium shares for each Pacton common share held. Trillium shareholders will own 53% of the merged company, with Pacton shareholders holding the remaining 47%.
Following the acquisition, Trillium said Pacton’s former interim CEO and president Nav Dhaliwal and former executive chairman Dale Finn have been appointed to its board of directors, while Luke Norman has resigned from his position as chairman of the board.
Trillium said it expects Pacton shares to be delisted from the TSX Venture Exchange in the near term.
Contact the author at stephen.gunnion@proactiveinvestors.com