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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

Comment by AlwaysLong683on Jul 19, 2022 4:18pm
134 Views
Post# 34835438

RE:RE:RE:Exploration stage

RE:RE:RE:Exploration stageNFG is a publicly-traded company. As such, they need to work in the best interest of all shareholders, not just two entities that own the majority of shares. They also don't have an unlimited amount of cash to spend on expenses, so they will eventually have to raise money. If the share price at the time of the equity raise is low, it will be due to those 40% of shareholders who are trading the shares, and whoever participates in that raise (likely Eric Sprott) will obtain those shares (flow-through or not) based on the share price at the time. The lower the purchase price of the raise, the better for him, but would result in shareholder dilution for outsiders if the private placement price is considered to be lower than what these 40% of shareholders believe a share of NFG is worth at that time.

I suspect many "average joe and jane" retail investors who have owned NFG shares over the past year or two have already allocated about as much cash as they can resonably invest in NFG while ensuring a well-diversified portfolio, so most may not be able to keep investing more and more money into the company like Sprott or Palisades or Kettell can. The average retail investor likely owns NFG shares because of the extremely impressive assay results produced to date, but in my view, as owners too, they should be updated on data NFG has received shortly after they receive it. As mentioned, outsiders own approximately 40% of the company. NFG is not a privately-held entity.

Yes NFG can do what it likes provided it complies with securities law. Yes people can sell if they don't like what they see. But if NFG is indeed witholding assay results data from public release, it is unfortunate and not good management practice in my opinion.


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