Last month, I wrote an update about Allied Copper and its announced acquisition of Volt Lithium. When this news was first announced back in October the stock got halted for trading due to this transaction. It opened back up for trading at the end of November and I wanted to see how the stock would do. I thought it was a good deal, but you never know how the market will react. Will the market sell the news or will it like it? It turns out the market has liked the deal as the stock has simply held up since it opened back up for trading and is now in a position in which it could break out of its trading range and go on a nice run. Check out the chart.
As you can see shares of CPRRF are trading on the US OTC exhange in a range with 10 cents being support and 14 cents being resistance. Now the company’s main listing is on the TSXV where it trades as CPR. The company has a market cap of less than $8 million USD. Typically small cap exploration stocks like this get to market caps of around $25 million USD in bull runs in the metals sector.
Now the company closed the share transaction with Volt on this past Friday, amounting to essentially a buyout merger of the company into Allied Copper. There are changes in the board of directors as a result and even the CEO that will be voted on at the next shareholders meeting, as some key Volt people have been brought in. This is a big deal. According to the Friday press release, “Volt holds approximately 400,000 acres of mines and minerals permits in the Rainbow Lake area of Alberta, specifically targeting lithium found in the brines of the Keg River formation.”
Allied Copper had three copper metals exploration properties in its portfolio before this transaction. It still has them and has been exploring the Klondike Property in Colorado. It lies within the Paradox Copper Belt, which includes the producing Lisbon Valley Mining Complex. The company reported on November 30th, the first results of its modern drill test on it. It reported, “Five holes were completed, testing targets at the Northeast Fault (two holes), West Graben Fault (two holes) and East Graben Fault (one hole), the results of which are outlined in the table below. At the West Graben Fault, hole ‘KDB22-05’ yielded a 42 metre long (core length) section with strong alteration and anomalous copper mineralization in a halo surrounding a fault intersection of 4.26% copper over 1.06 metres. Management interprets this as a strong indication of the potential for copper mineralization in the main strand of the West Graben Fault. With 76 unpatented mining claims, a State of Colorado Exploration Permit and an exclusive right to a State lease, the Klondike property affords Allied and the Alliance extensive runway to define additional copper exploration targets. Combined with the Company’s recent acquisition of Volt Lithium Corp, active exploration of these copper assets supports Allied’s goal of becoming a meaningful and responsible contributor to the world’s battery metals supply.”
That’s right. The company is now positioned as a big battery metals supply play, which are necessary for the growing green energy sector.
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Disclosure: Because Allied Copper is a small cap stock with a market cap of less than $100 million Mike Swanson has put himself in a trading blackout on the stock and will not buy or sell a share of it for at least 30-days from the date of this post (12/10/2022). Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Allied Copper. This third party paid Timingwallstreet Inc., $14,000 to produce and disseminate this and other similar articles and send traffic to them through paid advertising campaigns for 30-days in May. That campaign was paused in the middle of May and is now resuming. This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here.