Just as gold shows some signs of bottoming after 5 years, it's decision time at NuLegacy Gold. Barrick Gold (ABX) has a decision to make in 15 trading days or less. NuLegacy Gold (OTCQB:NULGF) has the potential to become a rising star in a rising gold market. - A great combination.
After 5 years, NuLegacy Gold is down to about two weeks, that could become the most important in its history. In September 2010, NuLegacy optioned roughly 25 square miles from Barrick Gold.
NuLegacy just spent $5 million & 5 years exploring to earn a 70% interest in The Iceberg Gold Deposit, adjacent to Barrick's largest, highest grade,lowest cost and politically safest gold deposits in Nevada's well established Cortez Trend. By December 29th, Barrick has to notify NuLegacy if it wants to "back-in" to a 70% interest. If so, it must spend $15 million within 5 years to earn back 40%, and end up with a 70% interest. Thereafter NuLegacy's remaining 30% interest will be carried to production.
NuLegacy's COO, Roger Steininger discovered two of the four Carlin-type gold deposits in the Cortez trend: Pipeline in 1989, and Iceberg in 2012.
NuLegacy Gold has been almost a secret. Only 20% of the float is in Public hands.
Current capitalization:
Principals: 45%
Institutions: 35%
Public:20%
Yahoo says the average volume is 46,000/day over the past 3 months. That may not include Toronto exchange volume. Friday U.S. trading was between 7 to 8 cents.
NuLegacy has completed two of its three objectives:
1. Discover a Carlin-type gold depoit.
2. Secure ownership.
and 3rd. (pending) Capitalize the value...
CEO Anderson has stated that NuLegacy: "had a great deal of interest from other mining companies that would like to be involved if Barrick chooses not to exercise their option."
Should you buy now when low gold prices have beaten down the price of explorers to literally pennies, Or should you buy later when they may have Capitalized the value, and gold is trading higher?
Next step:
Review their gold asset in this presentation.
Do your own due dilligence. Start with this up-to-date corporate presentation:
nulegacygold.com/i/pdf/NUG-Presentation.pdf
Follow that up by reviewing their website and searching under NuLegacy Gold, or NULGF. You can locate more than a handful of analyses. Page through multiple Search pages. Several articles at SeekingAlpha.com are not under Premium membership.
To find the U.S. market for NuLegacy Gold, go to OTCQX.com and enter the ticker NULGF.
It also trades in C$ on the Toronto Venture Stock Exchange. NUG:TSXV
Some major U.S. brokerages will have a Toronto quote, but if they are not a member, they'll have to pay perhaps 2/10ths to 1/4 of a cent above the ask to a member firm. Your experience may vary.
Sources: Corporate website, except for Yahoo reference.