Canadian junior mining company Cascadia Minerals has entered a definitive arrangement agreement to acquire all issued and outstanding shares of Granite Creek Copper.
The companies will merge to create a copper-gold exploration and development company combining Granite Creek’s advanced Carmacks Project with Cascadia’s copper-gold exploration projects portfolio across the Stikine Terrane in Yukon, Canada.
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Under the agreement, Granite Creek shareholders will receive a 48% premium based on the company’s recent average trading price, with each Granite Creek share exchanged for 0.25 of a Cascadia share.
The Cascadia shares are valued at C$0.04 ($0.029) per Granite Creek share.
Upon completion, Cascadia shareholders will hold a 59% interest, while Granite Creek’s will have 41% of the combined company.
Cascadia will be well-financed with approximately C$2.5m in cash to fund ongoing work on the combined property portfolio.
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By GlobalDataGranite Creek CEO and president Tim Johnston said: “This merger is a logical next step for both companies and will result in a combined entity with a robust portfolio of projects that will be positioned for success in these strong copper and gold markets. I look forward to remaining involved with Cascadia and moving the Carmacks Project forward towards development.”
The Carmacks Project, a high-grade copper and gold exploration and development site, is a key asset in the deal, offering strong resource potential and positive economic forecasts.
The project is strategically located within the Minto Copper Belt, known for its significant copper-gold-silver deposits. The project’s proximity to the past-producing Minto mine and access to infrastructure enhances its value.
Cascadia CEO and president Graham Downs said: “The Carmacks Project provides a strong foundation of road-accessible resources in a safe jurisdiction. Our team is confident in the exploration potential around the main deposits and throughout the property.
“We look forward to building on the systematic work Granite Creek has conducted in recent years by growing near-deposit resources and exploring along trend toward the nearby Minto deposit to the north. Planning is already under way for a fall drill programme at Carmacks, while work advances in parallel at our Catch Property and other discovery-stage Yukon Stikine projects.”
The terms of the transaction require approval from Granite Creek shareholders and option holders, with a special meeting expected in July 2025. Regulatory approvals, including from the TSX Venture Exchange, are also necessary for the deal to close.
In conjunction with the transaction, Cascadia is conducting a non-brokered private placement to raise up to C$2.25m. The funds will be used for exploration on the Carmacks Project and to cover transaction-related expenses.
Cascadia has also agreed to provide Granite Creek with a bridge loan of C$375,000 to cover transaction costs.
Additionally, Granite Creek plans to settle debts with TruePoint Exploration and a royalty holder through a shares for debt transaction, subject to TSX Venture Exchange approval.
In October 2024, Stillwater Critical Minerals signed a letter of intent with Granite Creek Copper to finalise a definitive agreement to divest a 90% stake in the Duke Island project in Alaska, US.
