"However, it may be as simple as one partner at a time gets worn down by market uncertainty and financing needs and the timing gets right for a merge."
Your comment is an interesting one. When I last chatted directly with Neil Novak (we talked about Spider Resources), I asked him how much he had in the bank. He replied about $2.8 million hard cash (money from a private placement).
What does this paltry amount (I'm not even considering the new private placement he's trying to sell for $3.75 million) mean insofar as Spider Resources work at the ROF - specifically the FWR Option JV and the UC JV? These JVs are focused on some pretty interesting and potentially very valuable chunks of moose pasture.
SPQ shareholders are clamoring for more drilling. The JVs alone require a commitment of at least $3.5 million. But the JV partners are not necessarily flush with cash either. How does one play one's cards?
Some SPQ shareholders want Neil Novak to focus on Spider Resources and get out of Noront. Conflict of interest, some say.
So what will Neil CEO say in front of the Spider Resources board having just $2.8 mil in the bank account? After all, he's got an AGM upcoming. And how does his position (VP) at Noront, and his contacts at Noront, affect his decision making at Spider Resources with regards to Big Daddy and the MICON technical 43-101 recommendations for drilling Big Daddy?
Is Neil getting worn down by market uncertainty and financing needs? Is he pushing for a merger?
I don't know, but I think Neil is the unique individual in this ROF drama. He may not have a Ph.D. like James Mungall; he may not be a slick talking CEO like Noront's Hamilton; and he may not have a pile of cash in SPQ's bank account. But he's been the longest working geo (with many contacts) up at McFaulds and he's got a sweet little position at Noront where he clearly is valued.
I think Neil Novak and Spider Resources are the pivotal players in McFauld's drama during this time of uncertainty and shrinking bank accounts. Watch what he does carefully.
IMHO
Snug
