Financing spending MD&ALooks like a very busy 2022/23. Lots of big moves towards the mine development.
Use of proceeds from the Offering With the expected net proceeds from the Offering of $41.9 million, the Company plans to use approximately $13.1 million to repay the Auramet short-term loan facility, $2.7 million for general corporate and working capital purposes, and $26.1 million towards accomplishing the following objectives:
Use of Proceeds Expected Costs $ Description and Expected Time Frame to Complete Feasibility Study
4,200,000 Mine and project design and compilation of the feasibility study expected to complete by December 2022 Net Zero / Metallurgy
900,000 Analysis of carbon sequestration potential on larger scale tailings samples expected to complete by December 2022 Further development of alternative processing paths for the nickel and magnetite products from the Crawford Project expected to be complete by December 2023
Environmental, Permitting and Community Engagement
1,500,000 Environmental and Social Impact Assessment process (including all related studies) expected to complete by February 2023
300,000 Ongoing community engagement process (including First Nations and other community costs)
Crawford Project Resource Definition 5,100,000 The Company plans to complete in-fill drilling programs at Crawford to upgrade and expand resources as well as update the resource model utilizing recent drilling. By June 2022 the Company expects a resource update and a further resource definition by September 2022. In addition, complete geotechnical work to optimize pit design and execute condemnation drilling of the footprints identified for various surface infrastructure, including waste impoundments to be incorporated into the feasibility study.
District Exploration: Geophysics and Pre-Drilling 2,500,000 Programs aimed at geo-physics surveys and pre-drilling to be completed by February 2023 at the following properties/townships: Southern (Deloro, Midlothian, Powell and Sothman) - $854,500 Eastern (McCool, Moody, Mortimer and Stimson) - $287,500 Northern (Mann, Reaume and Reid) - $663,500 Other (properties that the Company is proposing to acquire) - $694,500
District Exploration: Drilling 11,600,000 Drilling programs aiming to complete by February 2023 at the following properties/townships: Southern - $4,012,000 Eastern - $1,990,000 Northern - $3,732,000 Other - $1,866,000