A merger of Trillium Gold (TSXV: TGM) and Pacton Gold (TSXV: PAC) will create an explorer with over 15 projects spanning 1,260 sqkm in the Red Lake mining district, the companies say.
Pacton’s Red Lake gold project is within 20 km of Trillium’s Newman Todd complex and the western portion of its Confederation Belt properties. Trillium’s Leo and Pakwash properties are also immediately south of Pacton’s Dixie and Pakwash properties.
Under the proposed merger, Pacton will become a wholly-owned subsidiary of Trillium. The companies will merge on an at-market basis, with each common shareholder of Pacton entitled to receive 1.275 common shares of Trillium in exchange for one Pacton share. Once completed, Trillium and Pacton shareholders will own 53% and 47%, respectively, of the combined company.
If the merger is completed, Trillium’s landholdings will jump by more than 360 sqkm or 40%.
Pacton’s 280-sqkm Red Lake project is located between Pure Gold’s (NEX: PGM.H) Madsen property, Kinross Gold’s (TSX: K; NYSE: KGC) Dixie project and Evolution Mining’s (ASX: EVN) Red Lake mines. A 15-hole (5,698 metre) drill program there last year returned assays including 0.5 metre of 17.2 grams gold per tonne, of which high-grade surface samples included 126.5 grams gold and 23.3 grams gold.
Pacton also brings to the merger its 46.7% stake in the 86-sqkm Sidace project, 28 km northeast of Red Lake and located at the northern extent of the Red Lake Greenstone Belt. Evolution Mining owns the other 53.3% of the joint-venture project, which is adjacent to its Bateman gold project.
In 2021, 17 of 18 holes drilled at Sidace intersected gold, including 9 grams over 2.3 metres; 1.3 grams gold over 75.2 metres; 1.5 grams gold over 61.2 metres and 20.6 grams gold over 1 metre.
Trillium’s Confederation Belt properties span over 115 km along favorable structures, the company says, and its greater Newman Todd complex hosts over 20 high-grade zones.
Since January 2022, Trillium has drilled 17 holes (7,665 metres) at Newman Todd, with drill hole NT22 211-212 returning 8.75 grams gold per tonne over 20.4 metres, including 549 grams gold over 0.3 metre; and 40.56 grams gold over 4.18 metres including 136 grams gold over 1.08 metres.
Newman Todd, which includes Trillium’s Rivard property, is about 26 km from Evolution Mining’s Red Lake operations.
At midday in Toronto, Trillium’s shares were down 4.2% at C$0.115 and Pacton was down 8.8% at C$0.155 per share. Currently Trillium has a market cap of C$9.1 million and Pacton C$8.4 million.
Source: MINING.COM – Read More