Canadian mining company Trillium Gold Mines has completed the previously announced acquisition of Pacton Gold, an exploration company focused on the Red Lake gold rush in Ontario.

Earlier this month, the two companies secured the final order from the Supreme Court of British Columbia, approving the deal.

Pacton is now a wholly owned subsidiary of Trillium.

According to the agreed terms, Pacton shareholders will get 1.275 common shares of Trillium for each share held.

Trillium and Pacton shareholders will own 53% and 47% stakes in the merged business, respectively.

Additionally, all outstanding stock options of Pacton have been exchanged for stock options to acquire up to 2.1 million of Trillium shares.

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By GlobalData

All outstanding warrants of Pacton “remain in effect” and can now be exercised to buy 42,075 of Trillium shares.

Simultaneous to the transaction, Pacton’s former interim CEO, interim president and director Nav Dhaliwal and Pacton’s former executive chairman and director Dale Ginn have joined the Trillium board.

Trillium board of directors chairman Luke Norman has stepped down from his role.

The combined company will own 15 projects, covering more than 1,260km² in the Red Lake Mining District of northern Ontario.

It is claimed to be larger than major gold producers in the district, including Evolution Mining and Kinross Gold.

The combination will increase Trillium’s land holdings in the mining district by more than 36,000 hectares, resulting in 40% growth.

It can leverage the work completed by Pacton at the Red Lake project including 79 drill holes totalling 26,719m and 1,011 surface samples.

Last year, a 15-hole drill programme claimed to have intersected multiple high-grade gold targets, including 0.5m of 17.2 grams per tonne (g/t), of which high-grade surface samples included 126.5g/t and 23.3g/t.

A 2km-long gold-bearing trend at the Claremont Target with widespread anomalous gold and exposed zones of up to 60m long and 50m wide were also identified.