RE: Plan B I agree entirely, Rgrowden.
The deal that management just made is excellent!
There are a lot of juniors right now that are not able to raise any cash and will go under or be bought out for pennies on the dollar.
No dilution to us shareholders!
Thank you and good work management!
For a tiny 1.2 % royalty, Canadian Zinc now has approximately $12 million in cash to work with.
This will enable them to do many more things that will quickly enhance our shareholder value.
Dundee seems in favour of the deal and;
for Sandstorm to back this project up with $10 million of their cash says a lot in their belief of the permitting and economics of Canadian Zinc.
Now, for those that believe that Zinc is going to develop and run the mine (Plan B), I say it is highly unlikely.
They will be bought out shortly after permitting.
However, does anyone really think it is prudent and strategic for Canadian Zinc to just sit back, do nothing and wait?
Smart management continues to move forward.
So yes, I think the second part of the deal is a "Plan B".
If management did not have a Plan B, then we would all loudly complain about it.
Plan A: there will be a bidding-war / take-over once permitted.
The project will have a mine life going forward for the next 20 years.
It’s a high-grade mine with a relatively small CAPEX and near production.
JV or bidding-war take-over by major shortly after permitting.
Permitting is now just a few weeks away.
Things are going to start getting interesting.