Copper Company Makes New Acquisition

Blackwolf Copper and Gold Ltd. (BWCG:TSX.V) has made three major announcements: one about a change in company management and the acquisition of Optimum, a Canadian-based company.

The other came on June 26, when the company reported it would start mobilizing its geological team to commence early-stage setup and preparation work on the Cantoo Project near Hyder, Alaska.

The Cantoo Project

The Cantoo Project is a 13-hectare area comprised of 63 claims. Blackwolf gained 100% interest in the project as of May 2021

In light of this news, CEO Morgan Lekstrom commented, "We are very pleased to get our 2023 exploration season underway through the mobilization of our team at the Cantoo and Hyder projects in SW Alaska. This is shaping up to be a pivotal year for Blackwolf, with the maiden drill program at our Cantoo project now fully permitted with a drilling vendor engaged and ready to work. Concurrently, the recently announced Optimum Ventures transaction positions Blackwolf to make discoveries on both sides of the BC Alaska border at Optimum's Harry project, nearby and on-trend to Cantoo. Blackwolf will provide a comprehensive exploration update when drills are mobilized-targeting in mid-July."

Drilling at the Cantoo Project is expected to begin soon.

A New Acquisition and Changes in Management 

Blackwolf Copper and Gold Ltd. have appointed Robert McLeod as executive chairman and Morgan Lekstrom as CEO and director. Mr. McLeod, as executive chairman, will take on the responsibility of guiding the board, directing exploration programs, co-developing the strategic direction, and working closely with the incoming CEO on transformational growth opportunities. Mr. Lekstrom will start immediately as CEO. The collaboration between Mr. McLeod and Mr. Lekstrom is expected to create positive growth catalysts for the company.

According to Mr. McLeod, "I have known Morgan for many years and watched him grow into a mining leader that I believe will be a strong part of fostering significant growth for Blackwolf. We believe Blackwolf is exceptionally well positioned to lead the pack in the Golden Triangle, with the right team and strong investor base."

A Kitco report predicts that electric vehicles will account for 10% of refined copper consumption by 2030. Global copper consumption may grow at a yearly rate of 2.7% until 2028.

Blackwolf Copper and Gold Ltd. also announced that it entered a non-binding letter of intent (LOI) for a proposed deal where Blackwolf will acquire all of the issued and outstanding shares of Optimum Ventures Ltd.

The LOI predicts that the shareholders of Optimum will receive 0.65 of a Blackwolf common share for each Optimum common share held, which would add up to 26% of the company's outstanding common shares. At the close of this transaction, Andrew Bowering would be appointed to the board of directors of Blackwolf.

Andrew Bowering of Optimum said, "Rob McLeod and I first started working together in the Golden Triangle in 1995 when he was a junior geologist with Homestake Mining, and I managed investor relations for Teuton Resources. I look forward to working with him again, with young, enthusiastic CEO Morgan Lekstrom and mining entrepreneur and major shareholder Frank Giustra in our combined company."

Optimum is a Canadian mineral exploration company that is seeking out opportunities in the resource sector. Its properties are all located in the Golden Triangle of British Columbia and Alaska.

Blackwolf Copper and Gold Ltd. also announced that it entered a non-binding letter of intent (LOI) for a proposed deal where Blackwolf will acquire all of the issued and outstanding shares of Optimum Ventures Ltd. The LOI predicts that the shareholders of Optimum will receive 0.65 of a Blackwolf common share for each Optimum common share held, which would add up to 26% of the company's outstanding common shares. At the close of this transaction, Andrew Bowering would be appointed to the board of directors of Blackwolf.

Couloir Capital released a report that called Blackwolf Copper and Gold an "attractive return on investment," citing the company's new Mineral Resource Estimate (MRE) and its potential return on investment of 65%. 

Blackwolf would acquire all the issued and outstanding securities of Optimum within the agreed-upon terms. Each of Optimum's directors and officers, along with significant shareholders, are expected to enter into voting support agreements in favor of the proposed transaction. Upon completion of the transaction, the company's board of directors will consist of six members, with five of those consisting of current members of the board at Blackwolf, and the other will be Mr. Bowering.

The LOI provides for a binding exclusivity period whereby each party agrees to negotiate exclusively with each other. The LOI is not binding and does not obligate the parties to enter into a definitive agreement or go forward with the proposed transaction.

A Market of Growth

According to Kitco News, in a recent Department of Industry, Science, Energy, and Resources of the Government of Australia, copper consumption may be positively impacted by the push for green energy.

The report predicts that electric vehicles will account for 10% of refined copper consumption by 2030. Global copper consumption may grow at a yearly rate of 2.7% until 2028.

An Attractive Return on Investment

Couloir Capital released a report that called Blackwolf Copper and Gold an "attractive return on investment," citing the company's new Mineral Resource Estimate (MRE) and its potential return on investment of 65%. Couloir said, "The updated mineral resource update at Niblack is a major milestone and establishes the project as a 400,000,000 pound copper equivalent deposit." 

Blackwolf recently outlined its plan for the Cantoo drill target, where shallow stacked wide, high veins are a high priority for drilling in June of 2023. The company's value has been underpinned by the recently updated MRE, which showed 5.85MT indicated and 0.21MT inferred high-grade Cu, Au, Zn, and Ag resources at Niblack. The company has a path and vision for the hub and spock polymetallic mines and mill concept at Kitsault between Blackwolf, Dolly Varden, and three other companies.

Ownership and Share Structure

Management and investors own 9.2% of the company. Frank Giustra owns 13.4% of the company, Robert John McLeod owns 4.23% with 2.31 million shares, Jessica Van Den Akker owns 0.60% with 0.33 million shares, and Marilyne Lacasse owns 0.26% with 0.14 million shares.

Frank Giustra is a strategic investor.

Institutional investors own 11.08% of the company. Crescat Capital, LLC, owns 6.0%, Delbrook Capital owns 4.3%, and American Money Management, LLC, owns 0.02% with 0.01 million shares.

The company reports that it has CA$8.5 million in the bank as of April 4, 2023.

There are no reported sellers or warrants overhang.

There are 54.51 million shares outstanding and 41.02 million free-float traded shares.

The company has a market cap of CA$12.8 million. It trades in the 52-week period between CA$0.20 and CA$0.49.

Important Disclosures:

1. Blackwolf Copper and Gold Ltd. are billboard sponsor(s) of Streetwise Reports and has paid SWR a sponsorship fee between US$3,000 and US$5,000. In addition, Blackwolf Copper and Gold Ltd. is an affiliate of has a consulting relationship with Streetwise Reports and has paid a consulting fee between US$8,000 and US$20,000. 
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 and Gold Ltd.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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