Asked of me on cuu so posted here tooNovaGold has no exit so they have to bulk up. Expect an offer.
The extensive Romios property position represents a valuable asset for which the company is not getting anywhere near the value it merits. Activity in the region and drilling over the summer by Romios should bring a lot more attention to this company, pushing the price higher. Positive results from the Romios drilling could have a big impact.
The Trek property, wholly owned by Romios, abuts the southern edge of the Galore Creek property. The mine now under consideration by Teck and No-vaGold to exploit that massive deposit would have ore from the Galore Creek deposits transported by conveyor through a tunnel to a mill site in the valley. That tunnel passes through Romios’ Trek property. The access road to the Galore Creek site also traverses Trek. That road, which is partially completed, will link Galore Creek to Highway 37.
Just think about the dollar value of the synergy. Stunning to say the least.
All of this requires a cash generator like cuu to put icing on the cake. That would reduce interest cost and give a base to start from. CUU can be running faster than anyone else so it makes good sense that Teck kept an option on it.
Drill baby drill