RE:Update on world class partners. Hey @Anthony13, here is my theory as it aligns with my belief that the deal that is being worked on is not for the complete disposition of the Ishkoday but rather to fund the next stage of the project. The next stage is an expensive one and I think Laurion would rather leverage the potential of the stockpile and tailings to fund it over dilution or selling off a large percentage (especially at the current SP)
To that end, these are the partnerships that are my focus
1. Laurion's agreement with Metals House
2. Laurion's work with DRA Global, the Blue Heron Group and the Saskatchewan Resource Council
3. USGC and Metals House
4. Laurion and USGC
5. Laurion and Onyx Corporation
6. First Nation Agreements
1. Metals House sources and sells dore (unrefined mix of gold and silver from the mine). In 2019 they entered into an agreement with Laurion to secure first right of refusal on the stockpile and tailings (~10,000 oz).
2. If Laurion can monetize the stockpile they already have a buyer in Metals House. Blue Heron and SRC were brought in to evaluate ore-sorting techniques that could serve to lower the cost of dore processing of the stockpile in order to unlock the value. DRA Global were brought in to manage it and produce a preliminary economic feasibility study on doing so.
The study concluded that the techniques could work, but that a throughput of at least 1000 tons would needed to achieve econimc viability. This is small-scale production, however putting it place (construction/permitting etc…) requires more capital than Laurion has available. (estimate 25-60 million)
3. In the same year Laurion signed their agreement with Metals House (2019), and unrelated to Laurion, Metals House used USCG to secure 150 million in debt financing secured by physical gold to expand their operations.
4. With the rising price of gold, it may now be possible to extract the value in the stockpile, tailing and ore reserves. Metals House would seem la likely candidate as they already have an interest and the due diligence that is being undertaken by USGC could be validating of the work Laurion and it's partners have done to validate the techniques. The deal could be a prepayment of the reserves with a stakeholder's interest in the Ishkoday representing a security for Laurion to expand its exploration activities towards a disposition in the not-too-distant future < 2-3 years.
5. A small-scale processing facility has significant environmental impacts. Laurion's work with Onyx to ensure ESG compliance is a partnership is highlighted by the company and with good reason. It is a cornerstone to achieving regulatory compliance, especially if the short-term goal is to enable mineral processing on the Ishkoday.
6. Laurion have a good working relationship with the various Indigenous communities with claims over the land. These will need to be expanded upon but I believe the work Cynthia has done to date has laid a solid foundation for future agreements.
When I think about this, I am left with a sense of confidence in Cynthia and the board. I have often gotten the argument, “If more drilling is required, don’t you think Cynthia would have thought of that?”, and more condescendingly, “but I guess you are smarter than the board.” I don’t think that at all. I think Cynthia is doing a great job with what she has. I think that to achieve maximum shareholder value, she needs capital to advance the Ishkoday. By using the stockpile and the relationships she has built, she can achieve it with minimal dilution and importantly for her, minimal loss of control.
I think there are exciting times ahead. The stockprice may not reflect it right now, but as the plan comes together I think we will see the market catch up and we will be hitting new highs.
Of course, this may all be wrong. I have no special insight, this is just in response to your question. There is more to be expanded on, but it’s a sunny day and I have a to-do list.