Novo Resources Corp T.NVO

Tx, why is it better for KL not to take over Novo?

[GoNovo2014]

Hi Tx, 

KL and ES seem to prefer that Novo stay independent. Is it because it will likely be more profitable to them in the long run? Otherwise, you would think that they would have made an attempt by now before it gets away from them.

GoNovo2014

[TXRogers]

  Simply put: It's a clear business case where a partnership far exceeds the justification for merger or acquisition into one. This occurs when distinct and unique Core Competencies exist and flourish within the business model of a Partnership arrangement.  Since these competencies were developed independently and are not shared, they would likely diminish if absorbed into a

[stocksluice]

That is a good question, GoNovo2014, and I look forward to Tx's response. I would add another question: Why was it better for KL to take over Detour? What were they thinking?

[TXRogers]

Detour was a friendly merger.  Mutual consent towards mutual benefit. It always comes down to the will and desire of the players to create the optimal business arrangement.  One the preserves and nurtures Core Competencies. And Detour Gold was not a developing or unconventional business.  It was a known and understood entity that fit well into Kirkland's neighborhood

[GoNovo2014]

Tx and SS,  Thank you, both. GoNovo2014

[TXRogers]

It's rather strange how the mighty and affluent Kirkland Lake seems to have satisfied itself by selling 3% of its Novo stake for a $2.5 million pittance.  Incrementally from June to the closure of this last PP. The post closure period between Aug 25 and Sept 06 will be extremely interesting.  Much more interesting that this recent (and long expected) MOY acquisition. Tx