Post by
AlwaysLong683 on Apr 24, 2024 12:06am
Kingsway Acquisition
Catches the portion of the other side of the Appleton Fault adjacent to the NFG claims which NFG did not have, so that's a plus.
LAB produced little of anything in their drilling in those zones to date, so no one knows if any of the Kingsway property will be economically mineable. LAB's pitch was essentially "Hey, we have claims along the Appleton Fault - buy shares!" NFG will now have to sink money into drilling holes at Kingsway while also spending cash continuing to drill on their massive Queensway project, so the end result could be a waste of money drilling on land that will never be mined.
That said, for $20M in NFG shares, looks like good value for current NFG sharerholders as LAB's share price performance has been bad for quite some time now, so "buy low and hope for a payoff" seems like a reasonable strategy.