Blackwolf Copper and Gold Ltd. (BWCG:TSX.V) reported in a press release that it has finalized the acquisition of Optimum Ventures Ltd. According to the press release, Optimum's company shareholders will receive shares in Blackwolf relative to their shares in Optimum in a .65 to 1 ratio.
The press release also reports that Optimum will no longer be on the TSX Venture Exchange as of September 14, 2023, and that the company is submitting an application to no longer be considered a reporting issuer.
According to Morgan Lekstrom, the CEO of Blackwolf, "With the acquisition of Optimum, Blackwolf has become a top developer of precious and strategic metal projects in Alaska and British Columbia's Golden Triangle . . . The merger has brought exciting projects and expertise to Blackwolf, and we believe it will contribute significantly to our goal of creating value for our shareholders."
Blackwolf is also taking on Andrew Bowering as a director.
According to Rob McLeod, the Executive Chairman of Blackwolf, "We are proud to welcome Andrew Bowering as a new director of Blackwolf. Andy is one of Canada's top mining entrepreneurs, and we have a history of working together in the Golden Triangle since 1995. We are looking forward to working together again."
Gold and Copper
Rick Mills of Ahead of the Herd has provided coverage of the global copper market and commented that "supply is becoming a widespread concern as energy infrastructure takes up more of the metal."
According to Mills, in an effort to combat this growing shortage, copper has been designated as a critical mineral. Mills believes that this government support, in addition to growing demand and strained supply, could push the value of copper upwards.
Mills also reported on the gold market. He stated that while gold on the American market has slowed down a bit, it may still be a good option for investors. According to Mills, "Gold is considered a safe investment, meaning it's supposed to act as a safe haven when markets are in decline because the price of gold typically doesn't move with market prices."
A recent Stockhead article also touched on gold.he article states that gold has reached extraordinary highs on the Australian market at AU$3014 per ounce. Stockhead reports that this price jump is being driven by a decline in the Australian currency and a hold on interest hikes by the Federal Reserve that has strengthened the American dollar.
The company reports a number of catalysts.
Drill results of the Cantoo property are expected at the end of September.
Drill results from the Harry property are also anticipated at the end of October, though both of these are subject to change and dependent on assay labs.
An Immediate Strong Speculative Buy
Earlier this year, Technical Analyst Clive Maund rated the company as "an Immediate Strong Speculative Buy" for potential investors.
At the time, Maund cited the probability that the company's stock will start to swing upwards.
Maund wrote an update in July, where he said, "With a breakout into a new uptrend looking likely soon, we stay long, and Blackwolf Copper & Gold is rated a "Speculative Buy" here."
Red Cloud Securities also rated Blackwolf as a "Buy" and named a target price of CA$0.55, which represents an increase of 162%, citing the company's recent success on the Cantoo project, which returned 30 g/t Au in a recent sampling program.
Gwen Preston of Resource Maven commented on the company's recent news that "Blackwolf Copper & Gold Ltd.'s deal to acquire Optimum Resources is good, sensible and unsurprising."
Ownership and Share Structure
Streetwise Ownership Overview*
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own 16.44% of the company. According to Reuters, Frank Giustra owns 11.32% of the company with 12.3 million shares, Executive Chairman Robert John McLeod owns 2.16% with 2.36 million shares, CFO Susan Marie Neale owns 0.67% with 0.73 million shares, director Jessica Van Den Akker owns 0.30% with 0.33 million shares, director Andrew Bowering owns 1.83% with 1.99 million shares, and CEO and director Morgan Lekstrom owns 0.13% with 0.14 million shares.
According to Reuters, institutions own 5.58% of the company, while Crescat Capital, LLC, owns 4.66% with 5.08 million shares, and U.S. Global Investors, Inc., owns 0.92% with 1.00 million shares.
The company reports that Frank Giustra is a strategic investor.
Blackwolf reports that it has CA$8.5 million in the bank as of April 4, 2023.
In terms of negatives, the company reports no potential sellers or warrants overhang.
Blackwolf stated that it works with the influencer Alex Deluce of Gold Telegraph and that Niall Tomlinson of Coulier Capital provides news coverage and analysis of the company.
Reuters reports that there are 54.51 million shares outstanding, with 40.26 million free-float traded shares. According to Reuters, the company has a market cap of CA$8.79 million and trades in the 52-week period between CA$0.19 and CA$0.49.
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- Blackwolf Copper and Gold Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Blackwolf Copper and Gold Ltd.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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