RE:RE:RE:Cost to complete recommendations in Revised tech reportMy hunch is NFG will do their next equity raise (in all likelihood with Eric Sprott) at around the same time as last year's (October / November).
Not sure when the 87M figure for cash plus marketable securities was last updated on NFG's web page, but NFG's financial statements as at March 31, 2022 (exactly three months ago) showed:
85M in Cash
22M fair value of securities as at March 31, 2022 consisting of:
- 13.2M NFLD shares
- 12.5M LAB shares
- 6.6M NVO shares
- Stake in Long Range (private company?)
- 6.7M NFLD warrants
- 6.3M LAB warrants
Given the significant drop in the share prices of NFLD, LAB, and NVO since March 31, the 22M figure is likely signficiantly lower now. Also, I don't expect NFG to sell any shares in these companies unless they've given up on them, so I wouldn't count on these securities as a source of cash to fund ongoing operations.
So in my view, the key figure to fund ongoing operations is the Cash NFG currently has on hand (as stated above, they had 85M on March 31, three months ago) and I don't expect NFG to allow this balance to run down too low before doing another equity raise, so in trying to read the tea leaves given the planned spending, October / November sounds about right.
As an aside, I don't believe junior gold explorers can tap the debt markets for an extended term until they decide to build a mine and lay out a plan for potential creditors on the specifics of the build and its completion, so if NFG just plans to keep drilling and assaying, I think equity financing will likely be their only choice for an injection of funds.