Why?.......why did NFG/PALI settle with IDK?I was told that Collin Kettel's view was that the IDK lawsuit had no merit.
Last October there was a meeting between NFG and IDK with a mediator to try to resolve the lawsuit out of court.
After this meeting, large buys of PALI shares started to occur, and NFG stated, I believe, that court proceedings for the lawsuit would commence in January 2025.
The implications of these actions seemed to point to NFG believing the IDK lawsuit had no merit, and would result in no adverse effect for NFG/ PALI.
So, why did they settle, even if it was only for a small fraction of what the law suit was claiming?
On the CEO board, some have speculated that a Big Gold suitor has directed NFG/PALI to settle this lawsuit ASAP, as no buy in or buy out can occur with a lawsuit dangling over NFG/ PALI..
I don't want to see a buy out. I'm OK with a SMALL buy in, but I much prefer that NFG stay independent and mine North Queensway to begin with. Use the toll mill arrangement with Maritime as a cheap, very low capital expense method to begin mining.
When NFG did the Memorandum of Understanding with Maritime, it nade perfect sense to me, and I bought Maritime shares (MAE).
I see other gold explorers bootstrapping their discoveries into production, and I'd like to see NFG do the same.
Although PALI and NFG paid a small price to settle the lawsuit, it removed a dark cloud from over them, esp for PALI. PALI still has about one share of NFG for each share of PALI, I believe, and the discount is very deep. But, PALI has a very low cost basis for their NFG shares, so there is a capital gains factor for the discount.
I think the discount in buying NFG shares through PALI is around 25%, after consideration given for capital gains.
So, is this why PALI/NFG settled, to clear the way for a transaction of some sort?.....it does seem to fit.
A buy in of say 10% would make a lot of sense for developing Queensway, but keep it low % buy in, and any future further buy ins could be at much higher prices....IF needed.