RE:Booooo.....AlwaysLong683 wrote: Exerpt from OSK's press release today:
"Osisko Mining Inc. (OSK:TSX).....is pleased to announce it has concluded a 50/50 joint venture agreement with a subsidiary of Gold Fields Limited for the joint ownership and development of Osisko’s Windfall gold project, located in the Abitibi greenstone belt, Urban Township, Eeyou Istchee James Bay, Qubec......."
Not surprising OSK share price was down sharply this morning on heavy volume while gold stocks in general (both producers and eplorers) were up substantially.
I'd like to see NFG pursue one of two options after 2-3 more years of drilling and assaying at Queensway:
1) Sell the entire company to either a single major or perhaps two majors if the zones are plentiful enough at that time. If two majors band together to purchase NFG, it may be a deal similar to the Yamana takeout by PAAS and AEM. In that case, PAAS purchased YRI in its entirety, then promptly sold off some of YRI's assets to AEM. Since there's only one land package in NFG's case (Queensway), the two majors could form a joint venture and share both the costs of mine development and the ounces. There are plenty of joint ventures among mining companies world-wide, so this would not be out of the ordinary.
2) NFG mines Queensway itself by producing a Feasibility Study and obtaining the necessary permitting and full financing for the project. This mine build up to first pour would probably take 2-3 years from start first pour given the infrastructure already in place, with a likely stagnant share price until the project is fully financed and construction begins.
The first option would be the better one in my view.
No way would I want to see any partnership of any kind with a miner. Once this happens, the bounty is shared. OSK fell into this trap recently - I guess because they needed a lot more money to develop Windfall as they've been drilling at that site since 2015 back when the company was called Oban Mining and currently have 384M shares outstanding. Conversely, NFG started drilling in 2019 (4 years later) and only has 176M shares outstanding, or about 46% of OSK's current total.
With multiple labs assaying NFG cores including MSALAB’s Chrysos PhotonAssay facility in Val d’Or, Quebec combined with the 3D Seismic Survey due to be completed this summer, NFG should have a much larger database of assay results in two years' time along with MREs proving up the multiple zones they are currently exploring at Queensway North, plus perhaps one or two finds at Queensway South (a much larger chunk of the Queensway land claims with the Appleton fault running the entire length of that portion of NFG's claims).
In other words, if one or more majors wants to acquire NFG in 2 or 3 years' time, they can submit their bids. If they can't meet a purchase price (likely in the form of shares from one of the parties to a joint venture) that represents full value for the company at that time, NFG can proceed with their first mining operation, perhaps coupled with a very large mill / processing plant being fed by multiple zones at Queensway North.