Some thoughts It been my belief that NextSources Materials growth flexibility has been effected by its large float. In addition our main Australian contenders with holdings in Africa have high share floats Syrah Resources has 339.59 Million Shares and Magnus Resources has 610.39 Million Shares.
Our Modular Plant concept and large graphite and vanadium ore bodies should work in our favor even though our float at 491.33 Million shares.
Some of my past posts have addressed ideas that would have possibly lowered our float but, not by using reverse splits.
One idea consisted of our Institutional Investors taking a position in the Molo JV by surrendering their NextSource shares which would be held as Treasury shares for future use by NextSource. This did not work as the Institutional Investors normally move their assets based on price not by their involment in projects.
What NextSource's might consider upon receiving the Molo Mining Permit is to bring the Green Giant Vanadium project into focus and assign percentage values to both Molo and Green Giant based upon their project development costs, timing to production and potential profits. Lets assume that they came up with 40/60 ratio for Green Giant's Vanadium versus Molo's Graphite.
A 40/60 ratio of NextSources 491.33 Million shares divided between two new companies, each trading separately. Using the 40/60 ratio Nextsouce Vanadium would then have 196.53 Million Shares and Nextsource Graphite would have 294.80 Million Shares
For example: Shareholders holding Nextsouce shares would have them replaced with two new companies of which 40% would be with Nextsource Vanadium and 60% with Nextsource Graphite. At this juncture no reverse splits would be attempted while existing shareholders would have two holdings and have the same number of shares they held originally.
One must also consider that Nextsource Green Giant and Nextsource Molo can eventually be large producers providing quality products.
The idea would be to bring experienced JV partners into each of the 2 possible projects and schedule their growth based on future demand. Nextsource Vanadium could also be planned as a Modular Mine such as Nextsource Graphite.
If the above plan became reality, Nextsource Vanadium could make a study to determine if Vanadum Electrolites could be produced economically on site in Madagascar for direct sales to users or lessors?