RE:RE:RE:RE:RE:Investment BankersEric and Collin will make the deal for NFG in the $15 to $20 range in my opinion. And it looks like it could happen sooner rather than later.
I agree that a NFG SP in that range may be affordable by, say AEM, for a buyout.
However, I do not envisage ES parting with an entire 80km district play based on the 12km or so of gold drilling results.
Therefore, I believe the NFG controllers will propose the playbook which AEM accepted when they bought Canadian Malartic from Osiko. This playbook involved a an up-front consideration plus a 5% NSR, which Osisko now received and became a Royalty company.
A similar playbook was also followed by Virginia Mines when they sold out their St James Bay Elenore project to Goldcorp.
In the above scenario, the NFG vendors will in future benefit from gold production that a major will find and mine in the entire NFG distric play.
Most NFG shareholders will then not feel that they have sold a gold district, for the value of a multiple Fosterville like mine in a small section of their property.