Opinion sent to me today Levon raised $40mil at $1.95 and managed to get the warrants exercised in July when the stock was at $1.90 or so--hence the cash. The stock is now at ~
.90 despite the subsequent release of a substantial resource estimate and PEA. The resource is quite low grade, call it 23g/t Ag, 0.06g/t Au, 0.40% Zn, 0.46 Pb. After recovery that's ~19g/t Ag, .028g//t Au, .19% Zn, .34% Pb.
I don't think this is high enough to attract a major miner to buy them out (I could obviously be wrong). Regards the CA's, that is what companies do, check out projects so I put no value in the fact that CA's have been signed with major companies.
A subsequent PEA on 77% of indicated and 30% of inferred resources shows an after tax IRR of just 15% and 5 year payback on reasonably high metal price assumptions if you trust the PEA numbers. My personal bias is that the lower the grade and margin then less I am likely to believe these studies. In Levon's study, increasing capex 20% drops the IRR to 11.7%. Take note that nearly every capex guestimate over the past 10 years has been too low, particularly so for large bulk mining operations.
The PEA estimates $650 mil capex and LVN has a market cap of $175mil meaning they need to raise at a minimum nearly 4 times their current capex to build this. With at least one to two years to get the Bankable study, permits, water etc. in order then 5 to 6 years payback, LVN is not a company I would put my money into.