RE:RE:RE:RE:NGN has 1.36 million oz AuEq depositIt wasn't just for $250,000, it included 1 milliion shares and a 0.5% NSR. The shares allow them to participate on any upside. Many companies start mines from buying property on the cheap. It requires a lot of drilling and who knows how long to get environmental permits. Just because a company buys something on the cheap does not mean it is worthless. NGN is "buying" CRK on the cheap. Does that mean CRK is moose pasture as you say, or does that mean they are shrewd bargain hunters buying something that is depressed in price?
If the new management continues to buy undervalued assets like CRK on the cheap i wouldn't object to that. They said they intended to buy other property in Australia and a lot of mines in Australia are currently depressed in price. Look at the list of these gold mines.
https://www.kitco.com/commentaries/2015-06-11/Metals-Mining-Analysts-Ratings-Estimates-Juniors.html
The gold mines with the lowest P/E are all mines in Australia.
I can't buy AU mines with my broker, so i wouldn't mind if NGN buys them.
They are in the same situation as crk. High costs were dragging AU mines down. Now that the price of oil has fallen, the Aussie dollar has fallen, lower contractor and material costs, they have become more profitable. Slowdown in China and rise in US dollar contributes to drop in the Aussie dollar which reduces production cost of AU mines. Gold currently above AU$1500 very good for these AU mines.