Novo Resources (NVO) might be one of the most controversial gold juniors. There is a 35,274 ounces (a tonne) of controversy, hate and anger going on on message boards around the recent capital raise, that Novo decided to do by diluting the shareholders.
Doctor Quinton Hennigh and his team have analysed the different opportunities and decided that the (rather small) dilution will pay off in the long term.
So, in this interview I asked dr. Quinton Hennigh why they had to raise capital with Novo right now, when the promises we saw in the past always included “not having to dilute anymore”.
I also asked him whether it would’ve been a better option to sell some of the shares Novo bought in NewFound gold about a year ago. Dr. Hennigh said that that was not an option, and he also believes that these shares will be worth much more in the future. So, selling them now would’ve been much more hurtful to the shareholders of Novo Resources.
Continuing, I asked dr. Quinton Hennigh whether the company has cash problems, since it was recently claimed on a blog that Novo’s “Precarious Cash Balance” could drive them into the ground, and that therefore people should probably stay away from Novo Resources. There appears to be no such thing, according to dr. Quinton Hennigh himself…
CLICK HERE to watch the lengthy interview over at Youtube.