RE:RE:Ngd
bufordpusser wrote: It's irrational to think New Gold didn't take all this into consideration before investing what appears to be 24.8 million.
It's also safe to assume New Gold met with Appian and laid out the ramifications of not having New Gold at the table invested.
NewGold has some big decisions to make on priorities in the next week or two. I don't think that NGD will the savior that some of you claim they will be. Here is why:
Artemis cooked a deal with Wheaton Precious for their Blackwater asset. NGD has the First Right of Refusal on the asset. If they want to keep the asset they need to match WPM's offer for the silver royalty at Blackwater (see quote from press release below)
ANCOUVER, BC, Nov. 16, 2021 /CNW/ - Artemis Gold Inc. (TSXV: ARTG) ("Artemis" or the "Company") is pleased to announce that it has received a Silver Stream offer to enter into a definitive Precious Metals Purchase Agreement (the "Silver Stream Agreement") with Wheaton Precious Metals™ Corp. ("Wheaton"), in respect to the Company's Blackwater Gold Project in British Columbia ("Blackwater" or "the Project").
The letter of Offer, as well as a copy of the Silver Stream Agreement ("ROFR Offer") has been submitted to New Gold Inc. ("New Gold") as required under the terms of an agreement related to the purchase of Blackwater dated August 21, 2020, which serves to formally trigger a Right of First Refusal mechanism under that agreement. Under this mechanism, New Gold has 30 days from the date of delivery of the ROFR Offer to accept the ROFR Offer and offer identical terms as the Silver Stream Agreement from Wheaton. In the event the ROFR Offer is not exercised by New Gold, Artemis and Wheaton will be free to execute the Silver Stream Agreement within 120 days. The Silver Stream Agreement will be a subordinated secured obligation of the Company.
NewGold also has issues at their New Afton mine as seen here:
TORONTO, Nov. 19, 2021 /CNW/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) provides an update on the impact of the heavy rains, flooding and mudslides experienced in British Columbia, which have disrupted the transportation routes to the Company's New Afton Mine.
To date, the flooding in British Columbia has had no material impact on New Afton's infrastructure and operations. We will continue to monitor the situation closely and assess the impact of these events on New Afton and the implementation of mitigation measures. Any potential impact to production, sales, or costs at the New Afton Mine will depend on the duration of the disruption to the transportation routes.
Then there is the potential issue of what do they do with Harte. Do they make a move or partnership?
So many possibilities. . . tough decisions.