I'm a fan of them using some of the buyback. It tells the market that this should not be trading below 15c.
In this video (late 2019), Chris mentions finding possible partnership deals. In the mining world, a year feels like a month, so that video really was not that long ago (in the grand scheme of things). I'm sure Nova would still be very open to the idea of a strategic cornerstone investor at some stage this year. (like a Kinross, for example)
If that happens, that could significantly reduce the amount needed to raise at the next capital raise. It would also be at a higher price, because if a Kinross (or similar) was on board, this would really rerate, and therefore dilution would be minimal.
Once the Scoping Study is announced, there is every chance a large mining company would want to contribute/invest in Korbel (as a project in itself). That would be ideal for Nova, as it would reduce dilution and allow Korbel to be fast-tracked into production. Nova could then continue to explore the other areas of the Estelle gold district, such as RPM (which will also likely become the next major project itself, once Korbel is up and running)
Perhaps discussions are underway? Maybe money is not a concern for management? Louie Simens is a very very smart and capable businessman. He has extensive experience in capital markets and running businesses, as well as in corporate restructuring, due diligence and mergers & acquisitions.
All pure speculation, but the buyback could be very smart. We don't know what is happening behind closed doors.
NVA Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
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