RE:RE:RE:Wash, rinse, repeat...For what it's worth, I did not like the team leading NOT as well.
They took out a $15 million loan that resulted in interest payments in shares for several years, which diluted shareholders. They later purchased Cliff's holdings, which they financed with more debt.
Furthermore, they sold off their Windfall Lake gold property for a few million. That property eventually became Osisko, which was recently sold for $2.16 Billion.
So, although I made off well in the end, it could have been much better.
Luckily, BHP outbid the original offer and the end result doubled the original offer.
Over the years, NOT did manage to consolidate much of the proerty around them and Wyloo ended up with a massive amount of claims in the Ring of Fire.
However, there remains a few claims that are situated well within sizable deposits; FNC's claims and KWG's partial claims being a part of that.
Regardless of who is currently running FNC, if Wyloo decides to consolidate all that is remaining, which I think they will do to avoid competition in the area, then they will have to make an offer to KWG. The offer would result in the realization of the $34.5 million loan paid in full, along with buying all KWG shares and warrants that FNC currently holds.
Putting this into dollar terms, this sort of a deal could amount to an influx of $40 - $50 million to FNC, depending on the offer.
One last note: Maybe BHP, who was in a bidding war with Wyloo for NOT, may decide to be a competitor in the region and make a move for KWG themselves.
That could happen next week, or in 5 years, or never.
Worse case, it never materializes and FNC ends up with many shares of KWG; perhaps get's control of those claims again (in the event of a default by KWG).
Furthermore, I like their holding in CiA, which pay a decent dividend and is growing production and higher grades of higher paying Iron Ore. Or, we can get lucky on one of the other deals, for which FNC holds shares and/or royalties...maybe some good drill results at a time that commondity prices sore.
So, there are things here to be optomistic about.