RE:RE:RE:RE:RE:RE:RE:RE:RE:So SnidelyYes, in order to qualify for the flow through tax credits, the funds must be used on "Canadian exploration expenses". This is fairly narrowly defined and basically stops at the stage of core drilling. Things like feasibility studies or expenses associated with property development are ineligible for the credit (although there is a separate development credit that is much smaller).
And the reason I don't see NFG deciding to mine the property themselves is based on looking at the current management. Every single person on the Board or in Managment is tied to numerous other properties. Moving from exploration to production are two totally different worlds. NFG is packed with serial mineral explorers and the idea of moving them into the morass of mine development would be like locking a wild animal up in a zoo - basically a form of torture.
There are several ways it can play out (acquisition, merger, JV, etc.), but I really don't see a scenario where NFG defines a resource, then secures financing and them moves into production on their own. At least not without buying out the current players and replacing them before you do.
The best value to shareholders is for the current team to chase all the jewelry boxes on the property. In the mean time, let others in the vicinity move their properties into production and work through all the snags like infrastructure, training up a competent work force, transportation of product, growth/development of quality contractors in the area, etc. Once that all starts coming together, then a major can build the mothership operation of all mining operations at Queensway.
Just my thoughts on what will/should happen.
DanWarren wrote:
So, I'm guessing that maybe there is some prohibition in that financing procedure that precludes a company with mining revenues from using that type of financing?.....And you mentioned the possible sale of a part of Queensway North to a major, to begin mining....... I have been against the idea of selling out to a major, and I don't see why NFG becoming the mining company in Newfoundland, and buying up the small companies like NFLD, LAB, etc, wouldn't be the best way to get long term value for the shareholders. But, also realize that that's not what Sprot, Palisades, etc want to do....but, still don't see why........