Another M&A transaction has been announced within the mining sector. Granite Creek Copper (TSXV: GCX) revealed this morning that it has reached a definitive agreement to be acquired by Cascadia Minerals (TSXV: CAM) in an all stock transaction. The deal is expected to establish a Yukon-focused copper-gold exploration and development company.
The transaction will see Cascadia acquire Granite Creek on the basis of 0.25 shares for each share of Granite Creek held by shareholders. Consideration is said to be equal to $0.04 for each share of Granite Creek, based on Friday’s closing prices. The figure represents a premium of 48% based on the 5-day volume weighted average price of Granite Creek.
The merger will see Cascadia acquire Granite Creek’s Carmacks project in the Yukon, which boasts a resource estimate containing 651 million pounds of copper and 302,000 ounces of gold on a measured and indicated basis at grades of 0.81% copper and 0.26 g/t gold. A PEA completed in 2023 outlined a net present value of $230.5 million for the project, alongside a 29% IRR on an after-tax basis.
Carmacks will join a portfolio of exploration properties that includes multiple projects within the Stikine Terrane of the Yukon, including the discovery-stage Catch project which recently identified 1,065 g/t gold in outcrop sampling.
As part of the transaction, a concurrent financing will see Cascadia raise gross proceeds of $2.25 million via the sale of subscription receipts at a price of $0.14 per each. Each receipt is to contain one unit, with each unit containing one common share and one common share purchase warrant. Warrants issued under the financing contain an exercise price of $0.24 per share and a two year expiry. The placement is said to be supported by strategic investor Michael Gentile.
The transaction remains subject to shareholder approval, with a $0.5 million termination fee currently in place. The merger is expected to close in July 2025.
Cascadia Minerals last traded at $0.16 on the TSX Venture.
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