RE:HPQ.v - unlocking value in gold and quartzI think management is considering strategies such as these based on the spinout of the gold properties. It would be helpful to know more about the questions being asked by those in the industry that Bernard stated have been expressing interest in the technology. Would an acquirer of HPQ only be interested in the technology or would they also be interested in owning the portfolio of quartz properties? Financing for the Gen2 plant is estimated at roughly $12M. From what we've been told considering this is green tech that should not be a difficult amount to raise. Then if this scales in 2 years is there a need for additional financing or are investors weighing serious cash offers on the table? Even if investors don't plan on cashing out I'm not sure we could say no when serious offers were on the table. Cheers, Nap
brodeur wrote: Here's something to think about. Was right when called that UBR should own the IP for the purevap as financing and valuation of a new tech company resides with the IP. Now is another call to further unlock value and grow this big.
in addition to spinning out gold, spin out the acquisition, mining and development of the quartz properties into their own company. In essence, - gold company, a quartz company and a purevap technology company. Forget the fully integrated. By having a fully integrated strategy, we are missing out on large financing and business development opportunities that resides with just acquiring and developing Quartz properties.
when purevap becomes what we expect it to be, we need all the Quartz we need. By then holders of Quartz will increase their value before selling. In addition, HPQ has the know how to evaluate the properties, and they should continue leveraging the knowledge and know how to continue adding Quartz properties to their portfolio, developed these properties to production and be a seller to their strategic partner: HPQ Silicon.
It it is much easier for the market to finance pure mining companies than more complicated structures with other technologies and segments that may affect the profitability of the company. We should be getting the existing Quartz properties producing, with sales based on an individual mining company. If it yields highest profit selling to HPq then it will make that decision. If HpQ requires supply, based on any business models, the Quartz company will need to increase their production and continue maximizing production. Regardless how much purevap sells, Quartz will be produced in the existing properties while purevap will roll out silicon metal, using infeed from its strategic Quartz partner.