Why JV?While I think the purchase of Geodrill is a good long term decision - I must say I'm disappointed that they did not update shareholders
on other matters.
Why have they not updated us on the reasons they feel a JV route would be better. As a matter of fact they have never addressed this change of
direction in any news release.
I ask the question: Why would a JV be better for us than a financing package?
Well since Lion won't address this issue for shareholders lets take a look.
Lion has worked out two financing deals with no follow through. Why?
Lets go back and take a look at the quote in the PEA:
****"At a gold price of US$1,200 per ounce, the project is estimated to have a pre-tax IRR of 67.1% and a respective pay-back period of 1.25 years
after the commencement of production."****
I remind everyone that if we had of went ahead with the first financing we would be producing gold right now.
I'm just not convinced that a JV would be better than a financing with a 1.25 year payout based on ***1200**** gold.
With a JV we will give up part of the project resulting in a cap on share price versus 100 per cent ownership. On top of that Lion
might have to issue additional shares for LIons share of the development.
A JV just doesn't make sense in that light unless it's the other party that won't complete the financing. Bingo - and there you have your
answer.
It's the other party who balked on financing or Wally has dropped the ball.
Let's not forget this quote from the June 4, 2018 Update:
*** "it has entered into an indicative term sheet with Sinosteel Equipment & Engineering Co., Ltd. (“Sinosteel”) of China and Baiyin International Investment Ltd. (“Baiyin”). The term sheet incorporates an EPC and gold dor off-take financing facility totalling US$40 million (the “Facility”) ...."
and most important:
"Closing of the Facility is subject to satisfactory due diligence, board approvals, and final documentation, with closing expected to close in the third quarter of 2018."***
Not one word from Lion regarding that statement in that news release.
One might say this is speculation. OK - then let Lion end the speculation by addressing these issues.
Silence is often avoiding unpleasant truths.
Remember that statement made at the Denver Gold Show by Lion saying gold will be produced in 2020. With each passing week that is fading fast.
Well that's it for my long rambling. While some might think I'm being too negative - no - I just want answers and unfortunately
Lion is short on those.
Oh - I heard company "N" was one of main company's kicking the tires. Well they went after Goldcorp - I think they are going to be really busy.
Great project but the silence cannot be ignored. I am hoping one morning I will wake up and have a nice surprise. The good kind of course.