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Gold Mining Company Completes New Merger

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Outcrop Gold and Silver Corp. has completed its acquisition of Zacapa Resources Ltd. Read on to see why analysts like this company's stock.

Outcrop Silver and Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB) announced in a press release that it has filed an amalgamation agreement for Zacapa Resources Ltd. (ZACA:TSX.V) with the TSX Venture Exchange. Zacapa Resources Ltd. is also a junior gold and copper exploration company operating out of the Southwestern U.S. with high-quality drill targets.

The company highlighted several details of the agreement, including the fact that shares were exchanged at a ratio of four Outcrop shares for every one share of Zapaca, options and warrants for Zacapa were exchanged for Outcrop's options and warrants on the same basis, and Outcrop now holds Amalco as a subsidiary with Outcrop holding its common shares.

In another press release, the company reported that it had issued 30,017,474 shares to former shareholders of Zacapa, a total of 7,727,630 warrants valued at between CA$0.30 and CA$2.72 to holders of Zapaca warrants, and a total of 2,537,500 options of Outcrop worth between CA$0.20 and CA$2.80 to the holders of Zapaca options.

Gold Speeding Ahead

Katusa Research recently reported on the gold market, which it estimates is back on the rise after a dip a few weeks ago. The research seemed especially optimistic about the commodity, noting that "things changed fast, when less than a fortnight later, gold ripped CA$150/oz and entered the overbought territory." The report cited global uncertainty created by rising conflicts and lower liquidity as factors contributing to gold's increasing value.

Chen Lin of What is Chen Buying? What is Chen Selling? visited Outcrop in 2023 and met with the Vice Minister of Mining in Columbia, the CEO of Outcrop, and examined the company's samples, which revealed high-grade silver intercepts, and the company's mining rig.

Rick Mills of Ahead of the Herd also seems to view the gold market positively, which he reviewed on November 18, 2023.

Mills believes a number of factors are creating a favorable market for gold, including lower interest rates and a falling dollar, conflict in the Middle East, high national debt, and buying by central banks.

Mills commented, "If we're right, and we are on the cusp of a global economic revival, the three metals I'd want to be invested in are gold, silver, and copper. Even better, the junior resource companies that own large Au, Ag or Cu deposits in safe jurisdictions that would be of interest to larger, deep-pocketed mining companies."

Chen Lin Visits Company

Chen Lin of What is Chen Buying? What is Chen Selling? visited Outcrop in 2023 and met with the Vice Minister of Mining in Columbia, the CEO of Outcrop, and examined the company's samples, which revealed high-grade silver intercepts, and the company's mining rig.

Stuart McDougall of Research Capital Corporation rated the company as a "Speculative Buy" in September of this year, with a target price of CA$0.60 per share. Research Capital cited a number of factors in the company's positive rating, including the merger with Zacapa and the company's previous maiden resource estimate for Santa Ana, which stated there was an estimated 387g/t silver and 1.98 g/t gold.  

According to the company's investor report, the company has some catalysts to report, including ongoing drilling operations.

streetwise book logoStreetwise Ownership Overview*

Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB)

*Share Structure as of 11/24/2023

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 12.12% of the company.

According to Reuters, Executive Chairman Ian Slater owns 11.18% of the company with 24.49 million shares, Director Joseph Hebert owns 0.86% of the company with 1.88 million shares, Director Kevin Nishi owns 0.05% of the company with 0.10 million shares, and Director Paul Taggar owns 0.03% of the company with 0.07 million shares.

2176423 Ontario Ltd. owns 14.17% of the company with 31.04 million shares as a strategic investor, stated Reuters.

Reuters reports that institutional investors in the form of Timelo Investment Management Inc. owns 0.26% of the company with 0.57 million shares.

According to Reuters, the company has 219.03 million shares outstanding and 161.35 million free float traded shares, while the company has a market cap of CA$36.8 million and trades in the 52-week period between CA$0.12 and CA$0.43.

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Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Outcrop Silver and Gold Corp.
  2. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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