Blue Gold Limited (NASDAQ: BGL) was up by over 73 per cent at the end of the trading session on Tuesday following completion of its IPO on the Nasdaq Exchange last week. This trend continued after hours, putting shares up at US$100.00 apiece.
The excessively high stock price has led some to speculate that a short squeeze, pump-and-dump or other variety of market manipulation may be at work.
In a news release on Monday, Blue Gold said it would be expanding its footprint outside of the precious metal mining company’s Bogoso Prestea Mine in Ghana to other parts of West Africa and Latin America.
“These are producing gold assets, or assets close to production, whose owners are interested in taking a share-for-share exchange as consideration,” Blue Gold specified, “for increased liquidity.”
Bogoso Prestea is a past-producing operation that Blue Gold aims to restart with a US$53-million-dollar investment it recently attained. It has churned out over 9 million ounces of gold since 1912, making it one of the nation’s most prolific resources.
Ghana’s government currently holds a 10 per cent interest in the precious metal asset.
Conveyor at the Bogoso Prestea Mine, Ghana. Photo credit: Golden Star Resources — one of the previous owners
Read more: NevGold’s latest Nevada drill results show exceptional gold mineralization
Last owner made a mess of everything
The news follows the Ghanaian government terminating the last operator’s lease in September over insufficient funding needed to adequately develop the site. Future Global Resources had been letting the asset fall into disrepair for three years leading up to that.
Prior to indebted Future Global’s failure to maintain the project, Bogoso Prestea was producing about 150,000 ounces per annum. It still holds approximately 5.1 million measured and indicated gold ounces.
If Blue Gold’s rise on the Nasdaq is legitimate, the catalysts appear to be merely a bullish outlook for the gold sector and investor speculation as the company is yet to produce any ounces.
“We are especially pleased by the favourable macro tailwinds that have seen the price of gold increase from approximately US$2,000 per ounce at the time we entered this transaction to over US$3,000 per ounce at its close,” said Rick Gaenzle, Chief Executive Officer of Perception Capital Corp IV, on Jun 26.
Perception Capital is the special purpose acquisition company that Blue Gold merged with to make the Nasdaq listing possible. This triggered a 333 per cent pre-market spike on Jun 25.
“Congratulations to the team at Blue Gold Limited for completing their business combination,” said American investor Tao Tan in a popular social media post. “I’m thrilled to be joining the board as an independent director.”
Some interesting #bbby tin going around about $BGL. Blue/Gold dress DFV post etc. IDK if it means anything but it's interesting that it suddenly starts trading like this after years of nothing. pic.twitter.com/7ozVGgJPXC
— Mewshirebathaway (@Celestine618) June 29, 2025
Read more: NevGold’s latest Nevada drill results show exceptional gold mineralization
Follow Rowan Dunne on LinkedIn
rowan@mugglehead.com
