New Found Gold Corp V.NFG

Shelf short form prospectus

[BlueChipper2020]

The NFG filing on SEDAR for up to $100M does not mean they are raising that now. They can raise up to that in the near future. The below is why companies often do this (typically very solid ones at that and certainly at these dollar levels or higher). NFG has big plans folks that is the bottom line.

One other thing that I strongly believe. NFG has a long way to go in the FY 2021 - 200K drill program. I also see a large FY 2022 drill program which will be at least 200K or maybe bigger if that is even possible. Eventually they will do an initial resource limited to a handful of zones (e.g. Keats, Lotto, ect.). These initial resource estimates are NOT FOR THE ENTIRE PROPERTY, as that will take decades. The initial zones will in a few years be pushed to the PEA and PFS stage. I do not think most knowledgable investors would disagree to much with that. Finally, this is where things get tricky. In my opinion, building a mine takes a lot of expertise and companies like NFG (Continental Gold recently prior to being bought out) often will have a major buy a 19% stake in exchange for that expertise. It is then a win win and a major can justify the acquisition. That will happen most likely however alternately they could go it alone although you have to bring in a lot of mine engineers and expertise. Maybe initial open pit in some zones but then underground. We are a long way off from that now.

Until then, it will be drill drill drill baby. .

BC     




"A primary advantage of a shelf prospectus is that an issuer fulfills all qualification-related procedures beforehand, so that it can offer securities quickly when funds are needed or when market conditions are more favourable".

[likeike]

I always like how you think BC but this company is light speed. What do we need 100 mill for? We got 60 to 80 mill in the bank right now. These unique structures will lend themselves to a much different 43-101  then we have ever seen. In the big picture I can see us doing a scoping  study and straight into mining. What major has expertise with epizonal  orogenic structures? The

[Kewl002]

The prospectus is valid for 25 months - lots of time to decide when/if they want to raise additional funds.......

[megacopper]

  My guess is they will raise more cash at $10 cnd. Looks like they brought the stock back to this level for a reason. I know everyone says why raise more money because they have $70 million plus but who knows for sure what these NFG guys have planned. They could start the mining process simultaneously with drilling if they choose to do so.  I always wondered why Quinton Hennigh and

[likeike]

Exactly Mega ....who knows what they got planned...they can do anything they want and with the people involved it could go any direction. They have great minds with such  outside the box thinking. I am sure they are thankful for their great fortune and will use their powers wisely. I will follow their leadership blindly but may very well bring out SLUGGO if they even mention a

[Global1966]

It is rare to raise funds at a level of the existing share price. Shareholders are usually incentivised to buy more shares at a discount. . And it doesn't  make sense to list on the biggest exchange in the world for  $100 million extra funds down the track. That's pocket change for investors on the NYSE.

[megacopper]

[likeike]

So global you are saying NFG is a normal stock? They can raise money at more than their share price right now after releasing another round of drill results. RARE it is and they are breaking all kinds of records and totally  agree 100 mill is chump change but not on the AMEX NYSE....quite confusing the 2. In my book they are just doing this to increase the public float.. Thanks for

[Global1966]

You think Pallisades and Sprott will accept a dilution of their positions?

[likeike]

Geez Global you sound constipated. So you have a company with MC approaching 2 bill and to gain exposure to the big boys in the states you put up 5% and you call that dilution? The exposure they can get with that can only pay dividend.  It can create attention in the big boy market and not only stablize, add liquidity and  create more demand but put it on everyones radar. You sound

[Global1966]

The words "big boys" and "5%" are mutually exclusive. Big boys don't  bother with tiddlers

[TheGreekGoldGuy]

Ike, some people are not capable of looking at the big picture. When NFG reaches $15 in a few months, the Greek can't wait to read the market cap dribble from the nonsense posters. But he may have to get some of them off the ignore list.  The Greek here, mental constipation can be very tough to get rid of. 

[DanWarren]

This post has been removed in accordance with Community Policy

[BlueChipper2020]

NFG is not going to be on the same level of NYSE as Bank of America. It will be on the NYSE Amex level which is the old AMEX where many better quality US junior mining companies are listed. The 100M is very good for an initial listing on that level. In other words you are not going to see NFG ticket scrolling on the CNBC ticket ribbon on TV. BC