GREY:AXXDF - Post by User
Comment by
greenandgoldon Sep 06, 2011 11:09am
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Post# 19014226
RE: At what stage do most
RE: At what stage do mostThe Chinese offtake deal will happen before ADV runs out of money. Their latest presentation says they have $18.6 million in working capital. $10.6 million is committed for the rest of the 2011 budget, so they have about $8 millon to see them through the beginning of 2012 (and the release of the feasability study). So a deal with the Chinese sometime between now and Q2 2012.
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I suspect management prefers that its next fundraising be through an offtake deal with the Chinese, not through the general market. $100 million for 25% of the company, something like that.
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A 100% "buyout" like Cliffs' takover of Consolidated Thompson won't happen until ADV achieves commercial production, if ever. There's too much money to be made to take the easy route of an early takeover/buyout. If ADV goes into commercial production its market cap could be 20X its current size (Consolidated Thompson was bought out for 5 billion after achieving production, ADV's current market cap is $250 million). That will be a huge win for management and early investors.