RE: RE: RE: RE: The dream is turning to a nightmar I will let Onematch speak for himself, but here are my thoughts.
1. In the recent corporate update Volta confirmed a commitment to provide details of a phased in, staged in approach to developing the Kiaka deposit. Many on this board had suggested that this was a way to go, and now that Volta has agreed to seriously explore this possibility, with details in January, 2013 we are still hearing that we can't come up with the capex of 610 million. The whole point of the staged in approach is to avoid the large capex.
2. There are entire businesses and industries out there whose business it is to put capital and miners together. Standard bank is one of them, and it appears they have extensive experience working with African miners; they have great respect for Volta and are excited about the Kiaka deposit. Alka Singh's company seems to be based both on providing independent analysis of resource companies and also putting capital together with mining companies. Alka Singh's price target for Volta is $3.00; she has been a long time supporter of Volta and she is in the business of puting capital and miners together. As well, witness the emergence of income streaming companies, ie. sandstorn, who lend money in exchange for a future stream of the miner's revenue.
3. By third quarter of next year we will have a bankable feasibility study in hand. The significance of this for insititutional lenders cannot be underestimated. With the BFS in hand the directors of the lending instituion have an independent expert report upon which they and the share-holders can safely rely upon. If the development does not proceed as set out in the BFS the directors are off the hook and blame can be placed on the authors of the BFS. Rick Rules says that often there is a two or three month time lag from after the publication of the BFS until there is serious buyout interest expressed.
3. The fuinding does not need to come from one source alone; maybe we get 100 mill from a streaming company; 100 mill from Randgold; 100 mll from a bank; 100 mill from Randgold; and 100 mill from a share offering.......I don't suggest that this is the winning formula, but just to point out the endless possibilities.
4. Who says we have to develop Kiaka alone, or that we even have to develop Kiaka. Maybe we sell it outright to a larger gold miner with deep pockets. Maybe we joint venture it with a company that wants to get a foothold in West Africa.... who knows.
5. The fact is that even on the conservative assumption set out in the PFS Kiaka is going to be very profitable. If we transpose today's gold prices onto the PFS there is over a BILLION dollars to be made at a Kiaka mine; exponentially more if the price of gold increases. If there is money to be made the money will come.
6. Burkina Faso itself has an interest in this project proceeding. The country relies on revenues from miners as its primary source of gross national revenue. International organizations concerned with the welfare economy and well being of the people in this impoverished country have invested directly in Volta and have a stake in our success.
7. K. Bullock has repeatedly provided updates of the extensive efforts its company is making to build upon and improve the positive economics set out in the PFS. By the time we get the BFS we will probably have a whole different ball game. In the video of Rick Rule I posted a few days ago he says his company, which also has a business in lending capital to miners, has a wealth of opportunities to look at in today's world, and that they have the luxury to select the cream of the crop which he identified as: an IRR of 33 per cent or more; payback of capex in three years; and a capex less than the NPV of the gold in the ground, at today's gold prices. At today's gold prices and upon completion of the BFS we will fall into the category of what someone like Rick Rule will be looking for.