ClarificationsI’ve been following this for about 2 months now. Just finished reading the updated NI 43 101 and the first quarter results. I want to like this project/company but am stuck on a few things.
1) The company needs circa $170M of capital (d+e) to fund the construction of the mine. Company will need to fund 20-50%% of this up front, say $34M to $65M. Where does this come from, and why are people on this board still bullish on their prospects of completing the financing? It seems that the last two equity raises are being used for OpEx. And I can’t see how they can fund their share from their balance sheet.
2) Does anyone know the terms of the off-take agreement with the Chinese conglomerate that would be germane to a lender (i.e., are the receivables wrapped by a 3rd party insurer (e.g., EDC), and is it assignable, etc.)?
3) I am having a hard time unpacking the assumptions around selling prices that are embedded in the project valuation included in the NI 43 101. I see that they are from Industrial Minerals, which is good. Any comments or objections to these forecasts (other than it is almost impossible to forecast prices in general). In general, it looks like the conclusions of the study hinge on a near term growth forecast.
This post is not meant as a bash. I want better clarity on these issues. Thanks, GLTA. BH