Post by
BlueChipper2020 on Jul 22, 2021 11:17am
Shelf short form prospectus
The NFG filing on SEDAR for up to $100M does not mean they are raising that now. They can raise up to that in the near future. The below is why companies often do this (typically very solid ones at that and certainly at these dollar levels or higher). NFG has big plans folks that is the bottom line.
One other thing that I strongly believe. NFG has a long way to go in the FY 2021 - 200K drill program. I also see a large FY 2022 drill program which will be at least 200K or maybe bigger if that is even possible. Eventually they will do an initial resource limited to a handful of zones (e.g. Keats, Lotto, ect.). These initial resource estimates are NOT FOR THE ENTIRE PROPERTY, as that will take decades. The initial zones will in a few years be pushed to the PEA and PFS stage. I do not think most knowledgable investors would disagree to much with that. Finally, this is where things get tricky. In my opinion, building a mine takes a lot of expertise and companies like NFG (Continental Gold recently prior to being bought out) often will have a major buy a 19% stake in exchange for that expertise. It is then a win win and a major can justify the acquisition. That will happen most likely however alternately they could go it alone although you have to bring in a lot of mine engineers and expertise. Maybe initial open pit in some zones but then underground. We are a long way off from that now.
Until then, it will be drill drill drill baby. .
BC
"A primary advantage of a shelf prospectus is that an issuer fulfills all qualification-related procedures beforehand, so that it can offer securities quickly when funds are needed or when market conditions are more favourable".
Comment by
Kewl002 on Jul 22, 2021 1:01pm
The prospectus is valid for 25 months - lots of time to decide when/if they want to raise additional funds.......
Comment by
Global1966 on Jul 23, 2021 3:58pm
It is rare to raise funds at a level of the existing share price. Shareholders are usually incentivised to buy more shares at a discount. . And it doesn't make sense to list on the biggest exchange in the world for $100 million extra funds down the track. That's pocket change for investors on the NYSE.
Comment by
Global1966 on Jul 23, 2021 11:20pm
You think Pallisades and Sprott will accept a dilution of their positions?
Comment by
Global1966 on Jul 24, 2021 12:32am
The words "big boys" and "5%" are mutually exclusive. Big boys don't bother with tiddlers
Comment by
TheGreekGoldGuy on Jul 24, 2021 9:13am
Ike, some people are not capable of looking at the big picture. When NFG reaches $15 in a few months, the Greek can't wait to read the market cap dribble from the nonsense posters. But he may have to get some of them off the ignore list. The Greek here, mental constipation can be very tough to get rid of.
Comment by
DanWarren on Jul 24, 2021 1:25pm
This post has been removed in accordance with Community Policy
Comment by
BlueChipper2020 on Jul 23, 2021 8:28pm
NFG is not going to be on the same level of NYSE as Bank of America. It will be on the NYSE Amex level which is the old AMEX where many better quality US junior mining companies are listed. The 100M is very good for an initial listing on that level. In other words you are not going to see NFG ticket scrolling on the CNBC ticket ribbon on TV. BC