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New Found Gold Corp V.NFG

Alternate Symbol(s):  NFGC

New Found Gold Corp. is a Canada-based mineral exploration company. The Company is engaged in the acquisition, exploration, and evaluation of resource properties with a focus on gold properties located in Newfoundland and Labrador, Canada. The Company holds a 100% interest in the Queensway Project, which comprises an approximately 1,662 square kilometers area, located about 15 kilometers (km) west of Gander, Newfoundland and Labrador, and just 18 km from Gander International Airport. The Queensway Project is divided by Gander Lake into Queensway North and Queensway South. The Company also owns a 100% interest in the Kingsway property, which consists of 264 claims on three licenses covering approximately 77 square kilometers. The project is located approximately 18km northwest of the town of Gander, Newfoundland. The Company is undertaking a 650,000-meter drill program on Queensway. It has royalty interests underlying Keats South and several additional zones in Queensway.


TSXV:NFG - Post by User

Post by AlwaysLong683on Apr 13, 2022 12:12am
298 Views
Post# 34599073

Theory Re. Eric Sprott Purchase

Theory Re. Eric Sprott Purchase
Some may be wondering why Sprott purchased the 15M shares from Novo at 8.35 and 8.45 instead of just steadily buying more shares on the open market at current NFG share prices (mid to high 7's - closed at 7.68 yesterday).

Unless there are restrictions on him buying shares in the open market given the % of outstanding shares he already owns, I suspect he realized that if he tried to buy the 15M shares on the open market within a reasonable period of time, he'd likely have to pay higher and higher ask prices and thus drive the share price higher and higher 
as he tried to accumulate these millions of shares.

The 30-day average trading volume on NFG is currently around 145,000 shares. 15M shares would equate to approximately 103 days worth of trade volume at current levels, so in the end, he likely would have bid the share price up far higher than the 8.35 - 8.45 he paid for Novo's shares. Again, just a theory, but it would seem logical from Sprott's point of view.

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