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Frank Giustra Increases Investment in Gold and Copper Mining Co.

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Strategic shareholder Frank Giustra has increased his stake in Blackwolf Copper and Gold as a part of the company's most recent private placement deal. Read on to see why analysts like this company's stock.

Blackwolf Copper and Gold Ltd. (BWCG:TSX.V) announced in a press release that the company has closed a private placement deal where Frank Giustra, a strategic shareholder, was a major investor. According to the press release, the private placement commenced on October 6, 2023, and ended on October 10, and included a total of CA$3,263,523 in gross proceeds and included a total of 13,598,050 units, comprised of one share and one purchase warrant of the company valued at CA$0.24 each.

Additionally, according to the company, "each share purchase warrant is exercisable to acquire one common share at a price of CA$0.35 per common share until October 17, 2025."

Frank Giustra, according to the press release, added 3,125,000 units of the company to his portfolio and now holds a total of 15,961,285 shares of the company.

Red Cloud Securities published a report on Blackwolf that rated the company as a "Buy" for investors and named a target price of CA$0.55 for the company

Morgan Lekstrom, the CEO of Blackwolf, stated, "We are elated to see such strong support from our strategic shareholder, Mr. Frank Giustra, and strong demand from new and existing shareholders."

He also commented on the success of many of the company's recent endeavors, such as drill programs and the acquisition of Optimum Ventures: "I believe this is a strong indication as to how we want to strategically grow this company. We are now planning near-term work at Niblack and the next phases of work at Harry and Cantoo. We look forward to the receipt of assay results from Cantoo and Harry."

Gold Up to US$1,932.50

Stockhead examined the Canadian metals market on October 10, 2023, and concluded that copper has now outpaced gold. The report observed that, rather than competing primarily for gold mineralization as normal, major gold corporations, such as Barrick Gold Corp. (ABX:TSX; GOLD:NYSE), are now looking to gobble up copper properties.

Gold, however, is still going strong due to global uncertainty fueled by the Israel-Hamas conflict.

In another report from Stockhead, the situation in the Middle East has caused both American traders and consumers to take a conservative position on spending: "These concerns have overshadowed the rally in U.S. banks like JP Morgan and Chase, which beat estimates in their quarterly profits." Stockhead believes that this economic anxiety has pushed up gold prices to US$1,932.50 per ounce.

139% Potential Return

On October 3, 2023, Red Cloud Securities published a report on Blackwolf that rated the company as a "Buy" for investors and named a target price of CA$0.55 for the company, representing a potential return of 139% for investors. Red Cloud cited a number of factors in its positive rating of the company, including the favorable location of the company's projects within Alaska's Golden Triangle and the fact that the company is positioned to profit from the receding glacial ice that is exposing more potential mineralization targets on the property.

Technical Analyst Clive Maund also looked at the company at the beginning of the year, on February 2, and rated the company as an "Immediate Strong Speculative Buy".

Couloir Capital also reviewed the company on June 2, 2023, where it named a target price of CA$1.28 for the company, meaning that the figure in the report from Red Cloud represents a significant increase. This report identifies the company's recently updated mineral resource update, as well as the involvement of Frank Giustra, as potential drivers for the company's value.

Technical Analyst Clive Maund also looked at the company at the beginning of the year, on February 2, and rated the company as an "Immediate Strong Speculative Buy" and commented that the company's stock trends show signs of "a major bull market ahead that will result in big percentage gains from the current low price which should prove to be a great entry point a from price and time perspective."

streetwise book logoStreetwise Ownership Overview*

Blackwolf Copper & Gold Ltd. (BWCG:TSX.V)

*Share Structure as of 2/5/2024

Blackwolf has several catalysts to report, according to its September 2023 investor presentation, including a drilling program scheduled for sometime in Q3 or Q4 of this year and assay results and field samples pending for the Cantoo project.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 4.55% of the company. According to Reuters, Executive Chairman Robert John McLeod owns 1.92% of the company with 2.36 million shares, CFO Susan Marie Neale owns 0.60% of the company with 0.73 million shares, Director Jessica Van Den Akker owns 0.27% of the company with 0.33 million shares, and CEO and Director Morgan Lekstrom owns 0.12% of the company with 0.14 million shares.

Institutions own about 4.97% of the company, Reuters reports. They revealed that Crescat Capital, LLC, owns 4.15% of the company with 5.08 million shares, and U.S. Global Investors, Inc. owns 0.82% of the company with 1.00 million shares.

Frank Giustra, a strategic investor, owns 13.02% of the company with 15.96 million shares, according to Reuters.

Reuters also stated that there are 122.56 million shares outstanding, with 101.07 million free-float traded shares. It has a market cap of CA$18.98 million and trades in the 52-week period between CA$0.19 and CA$0.49, Reuters reports.


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Important Disclosures:

  1. 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. 
  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. 
  4. 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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