New Found Gold Corp V.NFG

RE:RE:RE:RE:Press release

[AlwaysLong683]

Flyby1969 wrote:

goldstd69 wrote: I think a takeover or partner will occur long before the big bucks are spent on starting a mine...lots and lots of exploration will occur first....jmho

So why would they hire mine builders and do environmental work?

Would rather see NFG just stick with drilling and assaying, but one advantage of showing they are moving forward with other preliminary steps toward the building of a mine along with the funds to do it is it may send a message to potential interested buyers that NFG may in fact be willing to go it alone if they can't get full value on a takeout.

Because NFG has the cash and current financial backing from big players like Palisades and Sprott, majors may wonder whether NFG needs a buyout to mine one or more zones and produce a win for shareholders vs. other junior explorers who may be viewed as being highly unlikely to build their own mine and mill and thus in need of a takeout to get a good payoff for shareholders. Not sure if NFG is this clever, but it could very well put the pressure on majors to gobble up NFG before the company makes an investment decision on a mine and starts to assemble financing, hire contractors, etc., as a major would almost certainly want to handle these negotiations itself. I still think this is years away, but getting MREs, environmental assessments, etc. can actually make NFG more attractive to potential buyers as some / much of the preliminary legwork will have been done.

One other possible twist. Given the sheer size of Queensway, it may be possible that an eventual takeout involves two gold producers in a joint-acquisition / venture of NFG with each owning a percentage of the Queensway project. This would enable more funds to be injected more quickly into further exploration and development of the massive Queensway claims.