Blackwolf Copper & Gold Ltd. (TSXV.BWCG;OTC:BWCGF) announced that it has completed the purchase of the company's Niblack Project camp assets in southeast Alaska. Find out why some analysts are optimistic about the company's upcoming merger with Treasury Metals Inc.
Blackwolf Copper & Gold Ltd. announced that he had closed on the purchase of camp assets at the company's Niblack project in southeast Alaska from Matrix Camps and Logistics Inc.
Under the agreement, dated April 30, the parties were released each of their prior claims under a camp support and rental agreement between them in 2021. Blackwolf's wholly owned subsidiary, Niblack Project LLC, will pay Matrix a US$100,000 deposit made before the deal and 9.3 million shares of common stock in the company to Matrix Aviation Solutions Inc., a Matrix subsidiary, Blackwolf said in a statement.
The shares are subject to a legal retention period until September 23. Furthermore, 50% of the shares are subject to a contractual resale restriction, which means that they cannot be sold for a period of one year.
black wolf and Treasury Metals Inc. (TML:TSX:TSRMF:OTCQB) announced earlier this month that they mergedforming a strategic partnership ready to improve their production and financial position in the gold market.
The newly merged entity will focus on the Goliath Gold Complex (GGC) in Ontario, which is close to being ready to enter production.
It is expected to produce approximately 109,000 ounces of gold per year at competitive costs. The move is strategically timed to capitalize on the potential rise in gold prices, with some market analysts predicting prices could reach as high as US$3,000 per ounce in the medium term.
“Blackwolf Copper & Gold Ltd. and Treasury Metals announced they were increasing their combined merger-related financing from (CA)$4M to (CA)$6.4M,” Hotline’s Jay Taylor wrote on May 10. “This combination establishes Blackwolf as a near-term producer while providing the combined entity with exceptional exploration projects in British Columbia and Alaska.
The catalyst: continuing growth in a strong gold market
Some analysts welcomed the merger between the companies.
“With a pro forma cash balance of ~(CA)$10 million, bolstered by (the financing), the combined company would be well capitalized to execute its strategy and continue its growth in a gold price environment strong,” Red Cloud wrote. analyst Taylor Combaluzier, who rated the stock offering, advising clients to tender their shares, with a target price of CA$0.35 per share.
Technical analyst Clive Maund highlighted the positive aspects of the merger between Treasury Metals and Blackwolf on May 2. He said the move is poised to significantly advance the GGC.
“Ongoing progress on the feasibility and authorization of work for the GGC project by the Treasury could potentially contribute to driving the price of BWCG shares towards our target until the transaction closes,” Combaluzier wrote on 3 may.
Technical Analyst Clive Maund highlighted the positive aspects of the merger between Treasury Metals and Blackwolf on May 2. He said the move is poised to significantly advance the GGC.
“This is a strong transaction for Blackwolf and Treasury shareholders, which places the company on a path to a buy-and-build strategy that I have implemented numerous times,” he said. writes Maund. “We view the GGC project as buildable and scalable on a district scale.”
According to a May 2 Investingwhisperer.com commentary, “Investors and large gold companies have a very limited time to acquire large assets – at low prices. As the Western world now gets used to a MUCH higher price of gold, SELLERS of assets will want a much higher price for their ounces in the ground. »
Six known VMS mineralization zones discovered
The Niblack copper-gold-zinc-silver project is located on Prince of Wales Island, southeast Alaska, Blackwolf said on its website. It covers approximately 6,200 acres, including 250 acres of patented land, and is located on tidal waters, with year-round sea and seaplane access and significant existing site infrastructure, including an 850 m underground portal. meters of production size.
“The project hosts a series of polymetallic copper-gold-zinc-silver deposits and has over 120 years of history, including exploration and production,” the company said. “Property-wide exploration programs, which include mapping, sampling and geophysical surveys, have been conducted along with over 120,000 meters of drilling in 424 holes both on surface and via a underground exploration tunnel. These programs discovered and delineated six known volcanogenic zones. massive sulfide mineralization (VMS) (Lookout, Trio, Dama, Lindsy, Mammoth and the historic Niblack mine site).
In February 2023, a National Instrument 43-101 compliant resource estimate was completed on Niblack. At a US$100 threshold, resources at the Lookout deposit contained 5.39 million tonnes in the indicated category grading 0.92% copper (Cu), 1.88 grams per tonne gold (g/t Au) , 1.72% zinc (Zn), 30 g/t gold (g/t Au), 1.72% zinc (Zn), 30 g/t gold (g/t Au). t of silver (Ag) and 159,000 tonnes in the inferred category grading 0.93% Cu, 1.63 g/t Au, 1.31% Zn and 18 g/t Ag.
The Trio deposit contained 460,000 tonnes in the indicated category, grading 1.16% Cu, 1.3 g/t Au, 1.75% Zn and 20 g/t Ag, and 55,000 tonnes in the inferred category, grading 0 .91% Cu, 1.2 g/t. Au and 1.9% Zn.
Ownership and structure of shares
According to the company, management and insiders own 9.2% of Blackwolf Copper & Gold.
With this transaction, Treasury Metals, alongside other strategic investors, owns 37.03% of the company. The rest belongs to retail.
Blackwolf currently has a market capitalization of approximately CA$17.16 million, trading in a 52-week price range of CA$0.09 to CA$0.37.
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- Blackwolf Copper and Gold Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee of 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 households) own securities of Blackwolf Copper & Gold Ltd.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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Contributing Author Disclosures
- Certification and remuneration of authors: Clive Maund from clivemaund.com is compensated as an independent contractor by Street Smart, a subsidiary of Streetwise Reports, for the writing of this article. Maund qualified as a British Technical Analyst in 1989. The recommendations and opinions expressed in this content fairly reflect the personal, independent and objective views of the author regarding all designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or opinions expressed.
Clivemaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him at the time of writing. Mr. Maund's opinions are his own and do not constitute a recommendation or offer to buy or sell any security. Because trading and investing in any financial market may involve significant risk of loss, Mr. Maund recommends that you consult a qualified investment advisor, licensed by the appropriate regulatory bodies in your jurisdiction, and make your own due diligence and your own research when making any kind of transactions. of a transaction with financial consequences. Although qualified and experienced securities analyst, Clive Maund is not a registered securities advisor. Therefore, Mr. Maund's opinions on the market and stocks should not be construed solely as a recommendation or solicitation to buy and sell securities.