As you probably know I m participating in as many PPs as I possibly can during this multi-month bottom grind in the juniors (assuming the company is legit and has a real shot of creating material value).
Just in the recent two months or so I have participated in PPs of:
- Cassiar Gold
- Millennium Precious Metals
- E2 Gold
- Tectonic (I might up this one even more because there is room left)
- Rolling Road (Private)
- Bald Eagle Gold
- Zacapa Resources
… All included warrants but unfortunately for someone greedy as myself most included Half Warrants (Much better than nothing though!).
Blackwolf Copper & Gold (BWCG.V) just announced a Private Placement and I will participate for a second time. If you also want to participate then you can contact CEO Rob McLeod (His email is [email protected]) and see if there is room and you can say that THH sent you (there is a finders fee).
When you have global markets wobbling, mining sentiment in the toilet and people expecting a raise in juniors the you can see some really weird valuations. Blackwolf Copper & Gold is no exception as the stock has been severely punished. I participated in the last placement which I think was around $0.60/share if I am not mistaken. I still hold those shares. Anyway, Blackwolf is doing another PP right now at an even lower price and the unit includes on share at $0.40/share and comes with a FULL Warrant with a strike price of $0.60/share.
The simple reason why I love warrants is because they bring risk free upside. If shares of Blackwolf trades over $0.60 at any point within the next two years then a warrant holder has the potential to buy shares at $0.60+X for a fixed price of $0.60. If, and note I say if, shares of Blackwolf would be trading at for example $2/share at any point within the next two years then anyone who participated in a placement would see a return (on paper) of 400% from the shares and have the option to buy the same amount of additional shares valued at $2 for $0.60. If one was able to sell the shares immediately at exactly $2/share then that would bring in an additional 233% return for a total of 633%. On the flip side if shares never go above $0.60/share within two years and/or even go below $0.40/share then a placement holder would still have no less return or loss than anyone who simply bought in the open market…. No additional risk (except holding period) but the potential for a considerably higher return if things play out well.
At $0.425/share (pre-financing) the Market Cap of Blackwolk is C$14 M. Lets say I wouldn’t be totally surprised to see the shares traded over $0.60 within the next two years. Assuming nothing has gone terribly wrong I think sentiment alone could easily get it over that threshold and then some:
As always you have to make up your own mind and this is not an investing recommendation. There are never any guarantees of success just Risk/Reward and Warrants skew the Reward side immensely. With Blackwolf I think I am either going to lose money or perhaps get myself a multi-bagger with the help of the warrants. I am certainly not going all in on Blackwolf despite the favorable warrants. It is one of many I have in my diversified portfolio. Remember that I think there is a holding period of four months so when you participate you cannot sell your purchased shares before said holding period is up. Never invest money you cannot afford to lose and do your own due diligence!
The company has an advanced gold/copper project in Alaska as well as multiple other exploration stage projects that were quite recently acquired. The plan is to work on multiple projects.
Company website: LINK
The Hedgeless Horseman