Cadillac Ventres Stock Price, News & Analysis

Cadillac Ventures Inc. (OTC PINK: CADIF; TSXV: CDC) is a resource-focused company active in mineral exploration and oil production. According to public disclosures, Cadillac has historically been described as an exploration company and is associated with the mining and natural resources sector, while also holding interests in producing oil wells in the United States.

Cadillac’s principal mineral asset is the Burnt Hill tungsten/molybdenum property in central New Brunswick. The property covers approximately 14,000 hectares and hosts a National Instrument 43-101 compliant mineral resource. The Burnt Hill tungsten deposit includes an indicated resource of 1,761,000 tonnes within an open pit and underground, and an additional 1,520,000 inferred tonnes, with reported average grades for tungsten (WO3), molybdenum (MoS2) and tin (SnO2) as summarized in a 2013 resource report referenced by the company. The company notes that, beyond the main deposit area, there are several other areas of identified tin, tungsten and molybdenum mineralization on the property that have not yet reached the resource stage.

In a shareholder update, Cadillac reported that it completed field work required to meet assessment requirements on the Burnt Hill property and filed the results. The company also states that Burnt Hill contains a NI 43-101 mineral resource and that it is evaluating or reviewing additional mineral projects. This positions Cadillac as a company with exposure to specialty metals such as tungsten, molybdenum and tin through a defined Canadian exploration-stage asset.

Cadillac has also been involved in corporate transactions affecting its asset base. A definitive agreement was signed for the sale of the Thierry Mine Project, a past-producing copper and nickel mine near Pickle Lake, Ontario. Under that agreement, Cadillac agreed to sell a wholly owned subsidiary that held its interest in the Thierry Project in exchange for cash, shares of the purchaser and a retained net smelter royalty. Following completion of this transaction, public disclosure states that Cadillac’s mineral asset is the Burnt Hill tungsten property in New Brunswick, which contains a NI 43-101 mineral resource, and that Cadillac is valuating other mineral opportunities.

On the energy side, Cadillac expanded into oil production through a transaction with KFG Resources Ltd. A plan of arrangement was entered into under which Cadillac would acquire all of the issued and outstanding common shares of KFG. KFG, through its wholly owned subsidiary KFG Petroleum Corporation, owns primary producing oil reserves in Mississippi. Public information describes KFG Petroleum as owning primary producing oil reserves on the Spring Hill lease in Fayette Field and in Jefferson County, Mississippi, as well as two shut-in gas wells in Jefferson County and interests in additional oil wells in Adams, Franklin and Jefferson counties.

Subsequent disclosures indicate that, following the amalgamation with KFG Resources, Cadillac has an interest in, and receives income from, oil production in 12 wells located in Adams and Jefferson counties, Mississippi. The company has also stated that it holds several producing oil well assets in the State of Mississippi and is engaged in an acquisition review of several new projects. Management has suggested that the oil revenue associated with these assets can support the review and acquisition of additional mineral properties.

Cadillac has experienced regulatory developments affecting trading in its securities. A failure-to-file cease trade order was issued against the company by the Ontario Securities Commission on October 4, 2021, due to a delay in filing audited annual financial statements, related management’s discussion and analysis and required certifications for the year ended May 31, 2021. The company attributed the delay in part to complications from its amalgamation with KFG Resources and the impact of the coronavirus pandemic on completing audit work for new U.S.-based subsidiaries, as well as the need for an independent third-party valuation of KFG Petroleum. Cadillac has stated that it is working with its auditor and an independent consultant to resolve the cease trade order by completing the necessary financial statements and subsequent audit requirements.

Corporate communications also reference governance events and shareholder approvals. Cadillac has reported results of annual general meetings at which directors were elected or re-elected, auditors appointed, and corporate matters such as the sale of the Thierry Mine Project and potential share consolidations were approved. The company has indicated that, in anticipation of a resumption of trading following regulatory approvals, it engaged a website creator to restructure its corporate website.

According to technical disclosure cited by Cadillac, an independent qualified person under NI 43-101 guidelines has reviewed and approved certain technical information related to the Burnt Hill property. The company’s public statements emphasize the presence of a defined mineral resource at Burnt Hill and the existence of multiple zones of mineralization within the property boundary, alongside its income-generating oil interests in Mississippi.

Business Focus

Based on public information, Cadillac’s business combines mineral exploration with oil production interests. On the mineral side, the focus is on the Burnt Hill tungsten/molybdenum property in New Brunswick, which is supported by an NI 43-101 resource estimate. On the energy side, the company holds interests in producing oil wells in Mississippi acquired through its amalgamation with KFG Resources and subsequent arrangements.

Regulatory and Trading Context

Cadillac’s shares are listed on the TSX Venture Exchange under the symbol CDC and quoted on the OTC PINK market under CADIF, according to past news releases. A cease trade order issued by the Ontario Securities Commission restricts trading in the company’s securities in certain jurisdictions until required financial filings are completed and the order is revoked. Cadillac has publicly communicated its intention to resolve the issues underlying the order by working with auditors and consultants.

Key Assets and Projects

• Burnt Hill Tungsten/Molybdenum Property (New Brunswick): Approximately 14,000 hectares in central New Brunswick with an NI 43-101 indicated and inferred resource containing tungsten, molybdenum and tin. Additional mineralized areas have been identified on the property that are not yet at the resource stage. Field work to meet assessment requirements has been completed and results filed, according to the company.
• Mississippi Oil Assets: Interests in producing oil wells in Adams and Jefferson counties, Mississippi, acquired through the amalgamation with KFG Resources. Public disclosures refer to income from oil production in 12 wells and several producing oil well assets in the state, as well as an ongoing review of additional projects.
• Historical Thierry Mine Project (Ontario): A past-producing copper and nickel mine near Pickle Lake, Ontario, formerly held through a Cadillac subsidiary and sold under a definitive share purchase agreement. Cadillac retained a net smelter royalty on the project as part of the consideration.

Risk and Considerations

Investors reviewing Cadillac Ventures Inc. should consider the implications of the cease trade order, the company’s reliance on successful completion of financial reporting and audit processes, and the exploration-stage nature of its primary mineral asset. Public disclosures also highlight that some assets, such as the Thierry Mine Project, have been sold, and that the company continues to evaluate other mineral and energy opportunities.