Argex Titanium Inc. ARGEF

RE: Is this a hint from the new management?

[skyyvodka]

CTL agreement:

The LOI provides for milestone payments of the total consideration which shall be paid as follows: (i) 10% on signing of the transaction documents; (ii) 20% on completion of Laboratory Work (phase II metallurgical test work); (iii) 30% on completion of mini-plant work (phase III metallurgical test work), and (iv) 40 % on completion of the engineering work for a production facility.

The CTL contract will probably be signed when phase II is completed. If it's not successful there's no point in signing at all.

What I don't really like in this deal is the 2% royalty, it is probably on gross sales. They will get $1m cash and 2m in shares. adding 2% on gross sales is quite a lot.

The first year it will be $1.3m and when they reach full production it can be >$50m annually.
And what if they start production on other properties, in 10-15 years it can be over $100m annually that they will have to pay for the technology.

A patent is only valid for 20 years, so they really have to capitalize on the technology through other mining companies.

I don't think they will have time to do anything about Mouchalagane before the PEA. What will they able to do in 1-2 months? Start drilling, do a JV?

Argex management is in discussions all the time with BBA so I think they know that the PEA will be very good and this presentation reek confidence.

Beside a part of the CTL deal, I'm liking everything I see in the presentation and will increase my holdings.