RE:RE:RE:RE:Updated Drilling Results, April13,2022BlueChipper2020 wrote: You are right that majors won't be buying until there is a lot more work done HOWEVER the owners here won't be selling before there is a lot more work done to unlock much much more value. Expect the completion of this 400K drilling program followed by another in 2023/2024.
You are incorrect that you need a PFS. You don't. You often don't even need a 43-101. In the case of NFG you will not see a 43-101 which covers their entire property as that would take decades. In the future expect targeting of one or more zones for an initial resource estimate followed by a PEA/PFS. You may also see a 19% investment by a major at some point as I have seen that scenerio before.
So my point is you do not need a PFS for an investment by a major or majors.
GLTA
BC
1) It appears a Canadian public company needs a "yes" vote from shareholders who, combined, own two-thirds or more of the total shares outstanding to approve a takeover.
See page 4 of the following document from Osler:
Shareholder Approval
"Although the shareholder approval threshold for an arrangement is generally
subject to the discretion of the court and addressed at the procedural hearing
when the interim order is sought and obtained, an acquiror will typically propose
that it seek the same approval threshold as would be required under the applicable
corporate law statute governing the target company if the arrangement steps
were effected outside the arrangement process. In most Canadian jurisdictions
this threshold is 66% of the votes cast at the meeting of the target company’s
shareholders."
Thus, it appears the only ones who will decide if and when NFG is sold are Palisdades/Kettell and Sprott who combined control over 60% of the shares. I'm quite sure they could muster up the extra votes once they advocate for it - management and other insiders control another 6%, so that would likely make the cut right there without any need for any votes from other institutional or retail investors.
Also
a) Some large insititutions and/or retail shareholder who control the remaining 32% will likely also vote in favour if necessary to seal the deal if needed..
b) Finally, don't forget there are outstanding options and warrants out there held by management or the large investors that, if exercised, would increase their share count. and thus their % of total shares outstanding.
c) The Osler document above specifies 2/3 of the votes cast at the meeting, and many retail shareholders usually don't bother to vote.
Bottom Line: Those in here will not be deciding if or when NFG is taken out or at what price per share unless Sprott or Kettell spend time reading or posting on this BB and are influenced by what is written. :-)
2) Like BC stated, a sale could take place without resource estimates. The only thing that matters is if at any point, an acquirer and the takeout target agree to a deal.
3) Though possible, given between 60 and 70% of total shares outstanding are likely not traded, I doubt a major producer who wants to acquire NFG will start buying up shares in sizeable amounts since they will have little say in the final decision to sell and wouldn't want to bid up NFG's share price as the selling price in such deals is usually at some premium to the average price of the shares over the last 30 trading days (or something to that effect).