Spot on Duke I almost feel that it is make or break time for NAG, with a hell of a lot riding on the outstanding assay results.
The NAG 2022 annual report raises serious concerns as to its ability to continue trading - one has to only look at their ratio of current assets (cash and debtors) of $381k versus current liabilities of $2.4m to understand that that are in a bit of strife.
Ok there has been a recent capital raise of $2m + &140k from SXG. But read the terms of the cash raise of $2m. Drawdowns are progressive with shares to be issued down to 4c/share, a substantial discount to the current 6.9c. If the SP drops below 5c/share the investor has the right to stop the funding at their discretion. There are other onerous conditions on this capital raise. In short, NAG are coming across as quite desperate, and have effectively put themselves in the position wherein unless the assay results come in very positive, and this helps to lift the SP, then the investor holds all the aces.
I do not know the background of NAG, SXG and Mawson, and who did what to whom and when, and for how much.
I own a good quantity of SXG, starting from IPO days and added to since then, and have just bought into NAG ( as a bit of a hedge/opportunity). In any investment I rate management highly - comparing the two managements of SXG and NAG is like chalk and cheese. Between the two of them I consider there are huge prospects. Huge. SXG will probably succeed in its own right - NAG not so likely. But together - would love to see it.
NAG needs to cut out the BS distractions they have and concentrate on the main game. If NAG did fall over, SXG is perhaps in a good position to pick up some of the pieces because of the JVs they have with NAG, at bargain basement prices.
Join SXG and NAG together, have SXG as the managers and put some serious money behind it. Would love to see it.
NAG Price at posting:
6.9¢ Sentiment: None Disclosure: Held
