New Found Gold Corp V.NFG

RE:RE:RE:Low capital cost to develop Queensway

[AlwaysLong683]

I agree that if (when?) a mine is built, it needs to be sizeable and worthy of such a deposit. Building a smaller mining operation only to find the need to go bigger in the not-too-distant future means added expense - must re-hire / bring back all the contractors, engineers, mine-building equipment, mine-building workers, the sourcing building materials, etc. a second time to start up again and complete an expansion or second mine - will likely end up costing much more combined than if you just build one large state-of-the-art mining operation from the start that can process large quantities of rock befitting the Keats / Golden Joint / Lotto zones.

As far as who ends up with Queensway (plus Lucky Strike) and the subsequent mine-building costs and gold production (at least as I see it re. whree things stand today and observing recent events), I think the odds-on-favourite is Sprott Mining Inc. taking all of NFG private with Palisades / Collin Kettell's votes/support. These are the only two entities that matter right now given their combined % ownership in the company. If Palisades gives the exploration of Queensway a couple more years, they'll get a better guage on how much per share they will accept for Sprott Mining to buy them out. Sprott may also be planning to complie cash (if he hasn't started already) to meet the asking price from Palisades if and when it comes. Also, there is a possibility that Sprott Mining may offer a purchase price at a very generous premium sooner to try and expedite the process.

According to page 4 of a PDF document provided courtesy of Business Law firm Osler entitiled "Canadian Public Company Mergers & Acquisitions" :

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.

Note it states "votes cast", not "total votes/shares outstanding", which means if any given invester doesn't bother to cast their votes, their shares are ignored when the vote % is tabulated.

Regardless if I'm right or wrong, the final fate of NFG will be up to the big boys. Small retail shareholders are just along for the ride regardless of how each of us may prefer things to turn out.