RE:RE:Eric Sprout buys v.NFG at 11.39!
Retiredgeo wrote: The brokerages gave NFG 11.39/share. The offered those share to their preferred clients at $8.50 /share and kept the tax breaks. Of course, Mr Sprott's shares are at $8.50 or less. He is not loosing money on this deal.
Yes with the added tax benefit of the flow through shares the financing essentially works out to $8.50 a share. Eric Sprott is no dummy. As soon as the financing was announced the smart boys sold off on that day we had 2 million shares traded and took that money to participate in the financing. After all they are in this to make money. Difficult to say if the new shareholders are in this for the long term or just a quick flip.
My gut feeling is if drill results continue to be awesome this thing should double to be worth between $15 and $20 (valuation of $3 billion) a share before Christmas. Most likely those guys that took place in this financing will sell half at that point to get their money back. Anyways that is my take on things short term. Longer term is anyone's guess but as far as I'm concerned this property looks better than Fosterville so it will be a long upwards journey to much higher prices over the next couple years. I think we will all be amazed at how this stock eventually goes if the price of gold gets going and we get a positive gold market for the next couple of years. Everything is positive out at the site from what I'm hearing so the next few months should be very exciting.