Checking in.....Who was buying shares on Friday? Me. Bought some on the US side of the border. Why?
To begin, the reported transaction marks the end of John Lee. As any longtermer can attest too, Mr. Lee's management blunders have been too significant as to ignore. Meanwhile, NKL has an experienced management team with a proven track record at the helm with respect to Mr. Johnson. Via ongoing drilling, studies and a new resource estimate, this new management team will soon take ownership of the project based on their "understanding" of the deposit. That is, they are tossing Mr. Lee's work to date aside and are doing and re-doing things in a manner that will instill "confidence" in the market place. Admittedly, however, this new management team has more work to do on cleaning up the John Lee mess.
$7,000,000/17,300,000 = $0.4046 per share.
That is NOT Mr. Lee's style. Mark my words. Mr. Lee put some extra cash in his pocket for PCY where I think the official transaction price is closer to the current market price.
"Private Party"
Your guess is as good as mine as to who, what and why. IMO, this can potentially be a catalyst once revealed. Of particular concern for me is whether or not these shares are being purchased for the longer term and or with the intent to sell into the market place. With total shares outstanding, its important to keep the public float of shares outstanding as tight as possible. Otherwise, the stock price will struggle to digest all these new shares. Nonetheless, NKL is approaching that time of development where an interested major starts to take some action. Mr. Lee and PCY's decision to unload the bulk of its interests in NKL just might have provided that catalyst.
To close, glad to see some familiar names since my absence. It has been a long road indeed and none of us know as of yet if there is light at the end of the tunnel and or an oncomming train.