Copper and Gold Co. Prepares for the Future, Filing NI43-101 Report, Closing Deals

Blackwolf Copper & Gold Ltd. (BWCG:TSX.V) recently filed a report and closes CA$8.5 million deal to prepare for future exploration. 

Blackwolf Copper and Gold Ltd. has announced that they have filed a NI43-101 Technical Report for the Niblak project, which primarily hosts deposits of copper (Cu), gold (Au), Zinc (Zn), and silver (Ag). The report will update investors on the mineral estimate and technical for their most productive property, the Niblack project.

The company has also closed a private placement deal with CA$8.5 million in shares. Many of the shares were sold to Mr. Frank Giustra, who received CA$10,000,000, with individuals associated with the company also receiving smaller amounts of shares.

Blackwolf Copper and Gold is based in Vancouver, Canada, and its primary focus is mineral exploration and development. In 2020, they appointed Robert McLeod as CEO. Its flagship property is the Niblack project, which they hold 100% interest in, located in southeast Alaska on Prince of Wales Island. Blackwolf has prioritized collaboration with indigenous communities in the area.

Recently Closed Private Placement 

Blackwolf recently closed a private placement by selling CA$8.5 million in shares. The company sold 30,000,000 units of the company at CA$0.20 per unit, and 10,416,666 flow-through (FT) common shares of the company for CA$0.24 per FT share. This transaction was facilitated by Red Cloud Securities. Mr. Frank Giustra, through this deal, acquired 10,000,000 FT shares. Mr. Giustra had previously only had 714,285 common shares in the company.

Individuals that Blackwolf only refers to as "certain directors and officers of the company" also purchased a total of 166,632 FT shares and 50,000 units. None of the individuals received more than 25% of the company's market capitalization.

As of March 16, 2023, the European Union has proposed designating copper as a critical mineral.

The company has stated that the proceeds of this deal will go towards the exploration of the Niblack Copper-Gold-Zinc-Silver project, as well as the company's Hyder Gold-Silver Properties in Canada and the United States. The money will also be used for property expansion and general working capital purposes.

Blackwolf Copper announced that as of February 16, 2023, it has filed a NI43-101 technical report for Niblack titled "2022 Mineral Resource Update for the Niblack Polymetallic Project, Prince of Wales Island, Alaska, USA." The report was put together by Dr. Gilles Arseneau, PGeo, from Arseneau Consulting Services Inc. Dr. Arseneau is a qualified person according to the Canadian securities administrators.

Why Copper?

At present, copper is experiencing a severe supply shortage due to its broad applications in electronics, which has been exacerbated by the drive to decarbonize energy use.

Gwen Preston of Resource Maven said, "They will drill a very nice target in Alaska this summer, just across the international border from Stewart BC, that area produced high-grade vein material a century ago before being forgotten in an area that's known for such veins."

As of March 16, 2023, the European Union has proposed designating copper as a critical mineral, which would give priority to permitting mining projects. Global copper shortages have driven optimism on the side of investors: "I would highlight copper as the most critical metal globally given the shortage in the market.

We only had 3.5 days of copper stock equivalent at the end of last year," remarked Trafigura's co-head of metals and minerals. He estimates that copper prices could reach US$12,000/t in the next year.

In a discussion with Stockhead, Christian Easterday, CEO of Hot Chili, Dan Thomas, managing director of Hammer Metals, and Lachlan Wallace, CEO and managing director of Hillgrove Resources predicts that the price of copper will keep increasing as governments and markets seek out renewable energy sources.

Gwen Preston of Resource Maven put out a letter on March 22 explaining why she chose to invest in Blackwolf: "They will drill a very nice target in Alaska this summer, just across the international border from Stewart BC, that area produced high-grade vein material a century ago before being forgotten in an area that's known for such veins."

Catalysts

In February of 2023, Blackwolf announced an updated mineral resource estimate (MRE) for Niblack. The new MRE incorporated recent drilling and used more precise techniques than the previous MRE from 2011.

The updated MRE estimated that Niblack contains a 200 million pound CuEq deposit.

The update removed lower grade, inferred sections from the estimate, and while that did reduce the overall estimated amount of tonnage, it did increase the grade of what was estimated to remain in the deposit. The MRE also assessed Blackwolf's other properties besides Niblack, such as Trio and Lookout.

Ownership and Share Structure

According to the company, 17.6% of Blackwolf is held by management and insiders. President and CEO Robert McLeod has 5.82%, with 2.31 million shares, and Director Jessica Van Den Akker has 0.83%, with 0.33 million. 

39.20% is with strategic investors. Through this month's private placement, Mining Entrepreneur Frank Giustra has 27.05%, with 10.71 million shares. Crescat Capital LLC has 12.6%, with 4.81 million.

Per Reuters, 14.67% is with institutions. U.S. Global Investors Inc. has 2.52%, with 1 million. 

The rest is retail. 

Blackwolf Copper has a market cap of CA$9.81 million, and trades in the 52-week period between CA$0.20 and CA$0.76.

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