I wish to remind all ARV holders of the tale of George Harrison , the intrepid Australian prospector of the 1860's. Having discovered the main reef of the Wits, pegged it, raced off and registered it; he then quickly sold it for £20 , before hurrying off with his hard earned to look for the Au elsewhere. Ironic to give away a few hundred million ounces of Au for a few quid. Money (aka Gold) was worth something in those days. He was a happy fellow for a little while I guess.
I really hope we don't give this ARV away for a song by George.
But then again, being true blue Aussies, our sellers are rhyming to 160 yr old hit tune, and hurrying off to other Au dreams.
Watch this Sprott...
Thanks TXRogers at Stockhouse.com for your timely thoughts on the likely final broadside to ARV if our sellers oblige.
With apologies in advance dear readers!
The Construction of the HMAS Kirkland Lake
I love to see national holiday celebrations that involve naval ships, especially when they blast their guns for the roaring crowds. Although I really enjoy the blasts myself, I always appreciate the side chatter about the nuances of the actual ship designs, the intended use of the vessel, and history of the deployments. Usually results in a wonderful afternoon overall – with a great show, amazing equipment to observe, and really interesting people to share discussions.
A complex game or machine has many moving parts. The answer for many questions when witnessing such things is not just to observe the moves that appear, but the more difficult aspect of trying to understand the intent of the architects themselves. I mostly focus on the latter when it comes to junior investing in this sector (in which NVO resides). It has served me well in the past.
The key factors in this NVO investment continue to lie within the planned Time-Lines and the ES End Game for his construction of his Wits-2 Empire. Regardless of the final name of the resulting Major, it is safe to assume it will be a monster size company with the Pilbara as its center piece. And I believe the construction process is already well under way.
Many of the posters on this board are been asking the correct key questions. They pertain to the likelihood of Wits-2 (most important), company market caps, stock price potential, the prospects for neighboring Pilbara juniors, the NVO / ARV JV, advanced geological theories, locations of day-lighted conglomerate outcrops, etc., etc.…..
But I also noticed the absence of some very critical subject matter that pertains to the investment itself, which can be captured in these questions:
How can ES efficiently maximize his intended goals within the capital market structures of both North America and the more parochial Australia market?
How are “share swap type” take-overs and mergers going to be engineered between the exchanges where the bulk of the Pilbara junior shareholders are Aussies trading on the ASX?
Has KL/NVO really finished the conquests and control of the Pilbara junior players?
Do NVO NRs regarding gold content, drill data and trenching REALLY need to be held off until the end of the year?
And finally, why are all the KL moves the most important of all in this story?
The answer for to all these questions resides in the actions of Kirkland Lake Gold itself, aka the Piggy Bank for ES. KL is The Seed Money - It is currently the instrument for attainment of all goals.
Putting aside the final End Game speculation for now, it will be the KL actions in combination with NVO NR timing (which the world relies on for Wits-2 confirmation) that will predict the immediate events to come. And all of this has to engineered extremely carefully in these early days of set up.
Soon after KL management accepted the likelihood of Wits-2 and started his frantic acquisition of Pilbara assets (commencing with NVO and now encompassing ARV and De Grey….and who knows what else), we all witnessed some financial re-structuring in KL's capital market listings.
It started when Kirkland Lake Gold decided to List Common Shares on New York Stock Exchange - AUG 11 2017. This makes a lot of sense for KL since it now can tap into the huge capital pools of the American Institutional Investor. This is not really a direct issue for NVO shareholders on the surface. But within the full context of this particular story, the implications have a much deeper impact. And the timing of events should not be considered coincidental.
However, less discussed by the media was a more relevent subsequent event. The fact that shortly after the New York listing event, Kirkland Lake became bound for ASX listing - Kristie Batten of MNN - 19 Sep 2017
Canadian market darling Kirkland Lake Gold confirming to MNN that it plans to list in Australia within months.
THE ASX could soon welcome a new mid-tier miner to rival the size and scale of Evolution Mining and Northern Star Resources. Kirkland Lake Gold president and CEO Tony Makuch: Speaking to MNN on the sidelines of the Beaver Creek Precious Metals Summit on Monday, KL president and CEO Tony Makuch said with listings in Toronto, and more recently New York, Australia was next.
“We hope to be ringing the bell down there in November,” he said. KL shares have jumped by 176% so far this year and the company now has a market capitalization of C$3.3 billion.
Now, some may say that this is obviously tied to the success at the Fosterville mine in Victoria, Australia. But really, is it such a priority for KL to list on a marginalized market as the ASX to access and manage capital? Yes and No. The North American media as usual considered it a non-event. I think they completely overlooked the importance of it.
Wits-2 is big by its very definition. It is so big that it is being compared by many as meeting or exceeding the gold contributions of South Africa Wits-1 over the last 130 yrs. And this is not recognized as such by the outside world….not yet. But all actions to date by KL and NVO management already indicate acceptance, so the priority will be that corporate structure readiness. And all NRs must be timed accordingly.
Although the play is going down in one of the best mining jurisdictions in the world, most of the juniors are poorly represented under the umbrella of the ASX. Overall, investors in Canada, the US, and Australia are plagued by the barriers caused by TSX, OTC, and ASX listing.
I believe all the complex questions and issues above – as well as a prediction of time lines – can be anchored around the KL listing on the ASX. The KL Global Piggy Bank is likely setting up a branch office in Sydney as early as next month. KL is not going to Oz to raise money thru the ASX, it’s going there to invest money and purchase assets where they are on sale – and quite a few of them at that I suspect.
In Summary:
Going back to the original paragraph of this post and state a metaphor: The finishing touches on the HMAS Kirkland Lake are being completed as we speak. And our great ship is ready for commissioning on the ASX in the next several weeks. A ship that openly accepts Aussie and North American passengers and is equipped with a quarter billion dollars in cash within its magazines. I suspect the true mission statement will dictate a rapid deployment, so I look forward to watching the guns go off as she aims her shells at the Pilbara.
As NVO quietly pursues the explorations and data collection, it all buys time for the corporate structure deployment plan. Because I suspect that when “the shelling of Pilbara juniors” commences, the dealing and trading of KL share-swaps and consumption of Juniors (such as ARV, possibly De Grey) will become much more seamless thru the ASX for all investors.
The completion of the Kirkland Lake Gold multiple listing on the TSX, New York, and finally the ASX is key game move in my opinion. One that marks an important time line.
Tx
P.S. For all those investors that have pursued a strategy of investing in the smaller Pilbara nano-cap juniors, I have some advice to offer if I may. Not only companies like ARV, but the ones that have already been exposed to KL investment interest (like De Grey) will be in possible take-over targets while NVO plays the timing game with NRs.
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