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NuLegacy Gold Corp V.NUG

Alternate Symbol(s):  NULGF

NuLegacy Gold Corporation is a Canada-based exploration company focused on exploring for high-grade Carlin-style gold deposits on its premier 108 sq. km (42 sq. mile) district scale Red Hill property. The Red Hill is on trend/adjacent to three of Nevada Gold Mines' Carlin-type gold mines; the Pipeline, Cortez, and GoldrushII. Its Red Hill Property is located in the Cortez Gold Trend of north-central Nevada, United States (US). The Red Hill Property encompasses a total of 1,363 unpatented lode mining claims covering approximately 108 square kilometers (km2), of which 881 mining claims totaling approximately 68 km2 are owned, subject to certain underlying royalties, 100% by NuLegacy Gold Corporation and 482 claims comprising approximately 40 km2 are 100% controlled by NuLegacy pursuant to the Idaho Lease. Its Rift Anticline drill target (approximately 10 km2 within the 108 sq. km Red Hill property) has favorable Carlin-type gold system geology located within Nevada's Cortez gold complex.


TSXV:NUG - Post by User

Bullboard Posts
Post by BillSmith9on Mar 10, 2017 12:35pm
200 Views
Post# 25964138

From weak hands to strong hands

From weak hands to strong hands
Look, I remain grateful for the role the "persistent seller", (uh can I say Waterton?)  played in keeping the lights on several years ago. They invested when investors were nonexistent. As we know, junior explorers are not their niche. One reason it may not be their focus is illiquidity. Having a public float that's relatively small compared to total shares outstanding, means Waterton could get in, but not out.
I just saw an Investor Presentation that shows Waterton at 5%, of roughly 300 million, or 14.8 million shares. At roughly US $.20, that's near US $3 million to set Waterton free.
I'm not sure, but I think NUG management reads this board. I doubt they post, but some who do post are knowledgeable. I recall last year they offered a conference call to this board. I mention that because solutions presented here and opinions of them might carry weight.
Two possible solutions come to my mind. I would love to hear others.
First, I think we'd want to know Waterton would cooperate.
One idea to exxplore is the possibility of a corporate stock buyback for a portion of it, to create momentum in the share price, and generate steady publicity.
A second idea might be to conduct a secondary offering of Waterton's shares. I am not a securities lawyer, so I don't know what this entails. Again, it is a way to create momentum, publicity via news releases, and to take some or all of "persistent seller's" shares off the table. In a perfect world, it might move NUG's price up to make an investment by a new investor look more interesting to them, and more attractive to NUG due to higher share price. Of course there's some risk. NUG is in the business of taking prudent risks.
Finally some very judicious use of warrants could sweeten a secondary offering. Again, I'm not a securities lawyer, and I'm not suggesting anything near 1 warrant for 1 share. I wonder if "persistent seller" still holds any warrants? Hmmm...  Ideas?
Bullboard Posts