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Labrador Gold Does Extraordinary Deal With New Found GoldBob Moriarty While investors are searching for answers as to what the market will do next in an effort to find a wise and hopefully profitable investment the world stands with one foot on a banana peel and the other in a grave. The US government and most of NATO are doing their very best to promote World War III. Jim Rickards, formerly legal beagle for Long Term Capital Management has long been an advisor to the Military Industrial Complex. As such he participated in several war games pitting the US and NATO against the USSR or later Russia. In every single case the war eventually went nuclear. You see, it’s entirely possible that the US can achieve its goal of destroying Russia but first it must destroy itself and Europe. When you contemplate three hundred million dead Americans as a result of the massive stupidity of the US government you may want to ask yourself just what was it that made Russia the enemy of the US back in 1945 when this insanity began leading to the $5 billion coup de Tait in 2014 against the democratically elected government of Ukraine. Russia is not the enemy of the United States. Martin Armstrong said much the same thing recently in an article on his site. Paul Craig Roberts followed up with a similar argument against a nuclear war. Meanwhile Israel attempts to redefine the definition of genocide and war crimes combining ethnic cleansing, mass murder, torture and killing women and children. I was in a war just long enough to understand that killing people, especially innocent women and children, is not how you win a war. The genocide in Gaza is one of those events in life where everyone gets the opportunity to display their moral compass if they are so equipped. If you support genocide, your moral compass is fatally broken. If our idiot leaders don’t start World War III in the near future and you are looking for a relatively safe yet potentially very positive return, consider an investment in Labrador Gold (LAB-V). The company made an announcement about six weeks ago regarding the pending sale to New Found Gold for Lab’s piece of ground called the Kingsway project adjoining New Found Gold. Labrador Gold reached a high price of $1.85 in mid-2021 before declining to an all time low of $.09 last week. That’s a 95% decline and it is typical of that sort of decline to be followed by a 150% advance in the next year. From September of 1929 until July of 1932 the Dow dropped 89%. Lots of people know that. To the best of my knowledge, I am the only person to recognize that from July of 1932 until June of 1933 the Dow climbed 150%. The deal calls for New Found Gold to issue $20 million in NFG shares to Labrador Gold in exchange for a 100% interest in their Kingsway project. Labrador shareholders will vote on the transaction on the 27th of June. NFG plans on closing the transaction in Q3 based on the closing price of the shares on the last trading day prior to closing. The math is pretty simple. Last Friday LAB closed at $.09 a share. LAB has right at 170 million shares. The value of $20 million of NFG shares is just short of $.12 per share of LAB. But there is an extra bonus to LAB shareholders. LAB also has about $6.5 million in cash worth another almost $.04 a share. So, the offer is worth slightly less than $.16 a share for a company selling for $.09 on Friday. I am a giant fan of New Found Gold and have been since it started. The company has made one of the most important gold discoveries in Canada in many years. I can understand why LAB shareholders who paid far higher prices for the company are pissed at the 95% decline but they are also ignoring the fact that hundreds of junior resource stocks have been decimated in the last three years. LAB is not the Lone Ranger. For shareholders getting in today, they are getting shares in one of the best if not the best opportunities in Canada at a 25% discount. While frankly I don’t care what LAB management does with the $6.5 million in cash if they dump their NFG shares it would be a sign of insanity. NFG has already hit a giant deposit. LAB only MIGHT hit a deposit of any size if they have both luck and skill. New Found Gold is an advertiser. Labrador Gold is not but they used to be. I have bought shares in NFG in the open market and in private placements. So, I am biased. I have bought LAB shares lately. Do your own due diligence. Labrador Gold Corp New Found Gold Corp ### Bob Moriarty 321gold Ltd |
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