Copper & Gold Co. Involved in Merger Buys Camp Assets

Source: Streetwise Reports 06/03/2024

Blackwolf Copper & Gold Ltd. BWCGF announced it has closed on the purchase of camp assets at the company's Niblack project in southeastern Alaska from Matrix Camps and Logistics Inc.

Under the agreement, dated April 30, the parties released each from 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 prior to the agreement and 9.3 million common shares in the capital of the company to Matrix affiliate Matrix Aviation Solutions Inc., Blackwolf said in a release.

The shares are subject to a statutory holding period until September 23. Also, 50% of the shares are subject to a contractual resale restriction, which means they can't be sold for a period of one year.

Blackwolf and Treasury Metals Inc. TSRMF announced earlier this month that they were merging, forming a strategic partnership poised to enhance their production and financial standing in the gold market.

The newly merged entity will focus on the Goliath Gold Complex (GGC) in Ontario, which is nearing production readiness.

It is expected to produce approximately 109,000 ounces of gold annually at competitive costs. This 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 have announced they are upsizing their combined merger-related financing from (CA)$4M to (CA)$6.4M" wrote Jay Taylor of Hotline on May 10. "This combination renders Blackwolf a near-term producer while providing the combined entity some exceptional exploration projects in British Columbia and Alaska."

The Catalyst: Pursuing Growth in a Strong Gold Market

Some analysts viewed the merger between the companies favorably.

"With a pro-forma cash balance of ~(CA)$10 million, strengthened with (the financing), the combined company would be well capitalized to execute on its strategy and pursue further growth in a strong gold price environment" wrote Red Cloud analyst Taylor Combaluzier, who rated the stock Tender, 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 advance the GGC significantly.

"Progress on ongoing feasibility and permitting work for the GGC project by Treasury could potentially help drive the price of the BWCG shares towards our target until the transaction closes" Combaluzier wrote on May 3.

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 advance the GGC significantly.

"This is a strong transaction for Blackwolf and Treasury shareholders that puts the company on the path of a buy and build strategy that I have implemented many times" Maund wrote. "We see the GGC Project as buildable and expandable on a district scale."

According to a May 2 Investingwhisperer.com commentary, "There is a very limited time for investors and gold majors to snap up big assets — on the cheap. As the Western world gets used to a MUCH higher gold price now — asset SELLERS will want a much higher price for their ounces in the ground."

Six Known VMS Mineralization Zones Found

The Niblack copper-gold-zinc-silver project is located on Prince of Wales Island in southeast Alaska, Blackwolf said on its website. It covers about 6,200 acres, including 250 acres of patented lands, and is located on tidewater, with year-round marine and floatplane access and significant existing site infrastructure, including an 850-meter production-sized underground portal.

"The project hosts a series of polymetallic copper-gold-zinc-silver VMS deposits and has a 120+ year history, including exploration and production" the company said. "Property scale exploration programs, which include mapping, sampling, and geophysical surveys, have been conducted along with over 120,000 meters of drilling in 424 holes from both surface and via an underground exploration tunnel. These programs have discovered and delineated six known zones of volcanogenic massive sulfide (VMS) mineralization (Lookout, Trio, Dama, Lindsy, Mammoth, and the historic Niblack mine site)." [OWNERSHIP_CHART-1961]

In February 2023, a National Instrument 43-101-compliant resource estimate was finished on Niblack. At a US$100 cutoff, the resource 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 silver (Ag) and 159 thousand 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 Share Structure

According to the company, management and insiders hold 9.2% of the Blackwolf Copper & Gold.

With this transaction, Treasury Metals, along with other strategic investors, holds 37.03% of the company. The rest is with retail.

Blackwolf currently has a market cap of approximately CA$17.16 million, trading within a 52-week price range of CA$0.09 to CA$0.37.

Important Disclosures:

1. Blackwolf Copper & Gold Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. 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 & Gold Ltd.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

Contributing Author Disclosures

1. Author Certification and Compensation: Clive Maund of clivemaund.com is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts' Diploma in 1989. The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the 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 views 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 are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.