I shared a private message with cwallace regarding the possibilities of a merger between NOT-SPQ-FWR. It's something I've mentioned before and I thought I would share it here with my SPQ friends - I don't think cwallace would mind.
These are my thoughts only. I refer to it as a "merger of friends".
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With regards to a "merger of friends" - NOT-SPQ-FWR - and I say "friends" because this is the way Neil Novak refers to his association with Nemis and Watson, this merger might become a very strong possibility with a strong escalation in Noront's share price.
I'm going to assume that Richard Nemis would want to give Novak and Watson a fair takeover price (at today's prices) for their shares. How about a minimal "10 bagger" - around $1.00 for SPQ and $3.20 for FWR? (and I'm not even considering any upside share price movement for SPQ & FWR).
I haven't computed the math but the cost would be sizable. However, if the tonnages for all of the anomalies within a (let's say) 15 kilometer radius of Eagle One could be computed, I think the value of the ore in the ground might be staggering.
If an agreement could be made for a takeover, any potential takeover of Noront Resources would be made that must less complicated for a "major".
How about this thought: the total number of shares for NOT-SPQ-FWR is approximately 608 million. What would be a fair share price of a mergered NOT-SPQ-FWR? Let's say there's 10 anomalies with 50,000,000 tons (very conservative numbers, I think). Let's say each ton is valued conservatively at $500 . That's 25 billion dollars. A "major" says "I'll give you 20% of that!"
It computes to about $8.25 a share. That's a sizable premium for Noront but a way under where any intelligent shareholder would value its share price. (Remember, SPQ and FWR shareholders already have their money.)
I believe strongly that Nemis, Novak, and Watson have discussed "a friendly merger" scenerio. But it will all be in the timing. And I think it's just too early. And I think most "majors" will feel the same way. How many drill holes do NOT-SPQ-FWR have to this point? 50 maybe? And we don't have any 43-101s.
Finally, with PRB and FNC about to drill, and ith BMK drilling, there are going to be so many drill holes punched into the James Bay Lowlands this Spring and Summer that all of the water in muskeg might just drain away (just kidding). My point is that the mining frenzy is getting started, and with assays about to be revealed through multiple NRs, it's going to be a fun time for the "Ring of Fire" investor.
Snug
