RE:RE:RE:Sell Lucky Strike Project?
AlwaysLong683 wrote:
mega, you could be right about not getting much for Lucky Strike, but I was thinking it might be a better option than future equity raises to fund continued drilling if the selling price for the Lucky Strike Project is decent.
In its January 6, 2021 press release announcing their 8 rig, 200,000m drill program, NFG stated:
"With this expansion to 200,000 meters of drilling, the revised budget for the Queensway program commencing January 1, 2021 is approximately $35 million.
The Company currently has approximately $67 million in working capital and is well funded to support this expanded program."
Subsequent to this date, NFG raised new money twice from Eric Sprott (flow through shares at $5.25 and standard common shares at $3.84).
Given that NFG seems to have discovered that they actually did need more money to fund operations, I suspect that they may require even more funds as they move forward, especially if they continue to expand their operations.
I'd rather have them sell an asset they may never even try to prove out as a source of funding Queensway before possibly diluting existing shareholders by engaging in equity financing at discounts to current share prices.
I think the last news release stated they had 75 million in cash but I'm not sure if that took into account their recent investment in LAB. My guess is they next NFG financing will be with a US resource based fund once NFG gets listed south of the border. Just a guess