Buying Assets at Pennies on the Dollar It seems to me that the current strategy at NKL and PCY is to acquire assets for pennies on the dollar. NKL picked up Ursa Major and PCY consolidating their land position in Mongolia. If the markets turn up, then these moves will look like sheer genius. If the companies never get off the ground and end up losing these acquisitions, then they will look like distractions that consumed time and capital when those were critically needed elsewhere.
Two failures I have seen with resource stocks: 1) The property never becomes a mine, but 2) The property eventually becomes a mine, but someone else took it away from you first because your company ran out of time/money.
Clearly Wellgreen is a property that John Lee picked up for pennies on the dollar and made into something worth MUCH more (millions at this point and not the BILLIONS we want). I hope that was not a lucky move on his part, but was instead the beginning of a pattern.