RE:RE:RE:RE:Potential upside The pilot plant is producing and for what I heard, they are going through a tweaking process but that hasn’t prevented them from reaching out to some prospective clients already.
One must be careful not to make a bigger story with the financing than what their needs are in reality.
- They had no problem raising the money in the last PP over the summer. They had said they would raise $8M and they ended up with an over-subscribed PP of $8.5M.
- The company has a lot of warrants at 35 cents and 40 cents. As the share price rise, these will be exercised and that will bring in over $14M, free of charge.
- On the June 30th Financial statements, the company had $3.4M of mining tax credit receivable.
The value-added process lines for making USPG and expanded graphite that will be installed in the demo plant are eligible for heavy government grants since we’re talking about second transformation. In the case of NMX, I believe they were granted 50% of the cost of their production line in Shawinigan. I think NOU is expecting at least the same. wilwal wrote: The pilot plant has some advantages, and one of them is that it will make offtake agreements easier to write. Once offtakes are in place, financing options open up. The offtake client or a streaming company could provide some financing in exchange for a cut off the top of the revenue as an example, reducing the dilution.
Frelalait wrote: Nic777, Nou project is for sure a good one but before they get to that share price they need to finance, they had a hard time at 0.30 for the last one, which means that they will need to dilute a lot to get their money. I am not sure about that money spent on a pilot plant instead of getting it done with a partener. Nmx has done that to with their 1st phase plant and they never got value out of it. I think it might be a success but they will have to wait 2 years for the permit...