Hawkeye Systems to Acquire Blue Gold International for $250 Million
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Hawkeye Systems, Inc. has entered into a Letter of Intent (LOI) to acquire Blue Gold International Limited, an entity valued at U.S. $250,000,000, in a share exchange that will result in a reverse takeover of Blue Gold by Hawkeye. The shareholders of Blue Gold International Limited will hold upward of 95 percent of Hawkeye post-acquisition.
Blue Gold is the 90 percent owner and operator of the Bogoso Prestea goldmine in Ghana, which contains one of the most significant gold concessions in the world-famous Ashanti gold belt. As a diversified gold mining operator looking to acquire other prospective gold properties in Africa and elsewhere, Blue Gold will leverage its significant management expertise and an increasingly robust balance sheet.
The transaction is subject to due diligence and definitive documentation and is expected, by all parties, to close by October 31, 2022. Hawkeye and Blue Gold intend to complete a $6 million funding arrangement prior to July 31, 2022 which will be invested into Blue Gold and serve as working capital during the due diligence period.
“Following extensive analysis, we believe transitioning our strategy to become a diversified gold producer will enable the company to capitalize on the inflationary and rising interest rate macroeconomic trends and provide the basis for a growing sustainable business,” said Hawkeye Chief Executive Officer Corby Marshall.
“Given the project’s location in Ghana’s historically significant gold area, the Ashanti gold belt we are confident in our ability to build significant long-term shareholder value. The project has produced approximately 12 million ounces of gold since 1912,” added Marshall.
“We are pleased to be reentering the equity capital markets with a primary listing in the U.S. through this transaction with Hawkeye. We actively seek to leverage the equity capital markets at a time of increasing interest in gold, a combination that we believe will also create a strong platform for us to fully develop the proven sulfide resource and the significant unexplored strike,” said Dan Owiredu, chief executive officer of Blue Gold.
In support of the transaction the company appointed Christopher Mulgrew and James Kerby to the board of directors of Hawkeye. During the due diligence period, Hawkeye intends to complete a 1 for 10 reverse stock split and change the company name and ticker symbol. There will be a rebranding of the company, finalization of the go-to-market plan, recruitment of a new management team, and further modification to the board of directors.
About Hawkeye Systems, Inc.
Hawkeye Systems, Inc. is a technology holding company which has focused on cutting edge technology, pandemic management products and services. The company has made the decision in the current environment to become a diversified gold producer with the first asset being Blue Gold in Ghana.
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