RE:RE:RE:RE:RE:RE:RE:The FactWell said Dixie.
RE that I want them to mine....yes, but I understand they need to do the the steps needed in order to mine.
What I don't want NFG to do is wait and wait and hold off on mining because they are waiting for Big Gold to swoop in with a buyout offer, fearing that if NFG utilizes the toll milling with MAE , that this will mess up the interest with BIG GOLD from wanting to buy out or buy into NFG.
I have been saying for a long time that NFG as an investment will do much much better if NFG remains independent, and developed Queensway on their own.
If they start by bootstrapping themselves up, using toll milling to generate cash flow, this would make sense as the most cash efficient way to develop QW.
The cash flow from toll milling would allow NFG to fund much of its ongoing exploration and development expenses, and also allow them to get loans to build their own mill when the time is right.
Getting into production would allow the stock to start rising, would push the Shorts out of their position, and start an uptrend in the Stock. A rising stock price allows much better financing options for any additional funds needed for ongoing exploration and development.
Cash flow from mining solves much of the needs for funding exploration and development costs. Cash flow from mining also allows lenders to lend funds confidently,, and may replace further dilution from equity raises with loans. And if there is as much gold on QW as we believe, the loans will not be a problem to pay off, and pay off early.
Once NFG starts mining at a sufficient scale, beyond toll milling, NFG is off to the races, and BIG Gold will be left standing watching the train speed away down the tracks, ....BIG GOLD won't be needed.
That's been my argument.
I know others want Big Gold to swoop in ASAP, to get the fastest effect of a rising share price for NFG. I see their point. But, for retail shareholders, possibly the best way forward is to remain independent. You don't know what buyout deals might be created by the major shareholders that would sell out the retail shareholders, while allowing insiders to retain their direct ownership in their existing ownership portions of Queensway.
As I have said in the past...' Don't Sell Out to BIG Gold. - Become Big Gold'
With Big Cash flow coming from QW down the line, NFG would have all the opportunities to grow by acquisition in this Canadian Resource stock sector, in Bewfoundland and beyond.
By focusing on an eventual buyout by Big Gold, NFG is just an undervalued asset play. And Big Fold is going to play hard ball on any buy out prices.
By staying independent, NFG is still an undervalued asset play, waiting for production to reveal the underlying value of the assets. However, NFG also becomes a growth stock situation, as year after year their exploration and development may reveal more and more gold deposits on QW. But, the growth story could also expand because NFG is the top miner in Newfoundland, and in the perfect position to further expand by acquisition of the good prospects of existing resource exploration outfits in Newfoundland.....and other parts of Canada.
SPOT, an associated company of NFG has the data base for essentially. The entire Canadian resource stock sector.
This is why I sat NFG is in the Catbird's Seat....a position of prominent power for any negotiations.
NFG gets securely into the Catbird's Seat by getting into production ASAP.....and by staying independent