RE: RE: RE: Plan B Czicf,
What you said is simply not true.
Your post:
“The 1.2% NSR is based on $10 million and only if canadian zinc enters into a bigger agreement where the details have not been disclosed.”
False.
In fact, it is only the repurchase, if they choose to do so, that is contingent.
“Canadian Zinc Corporation (TSX:CZN)(OTCQB:CZICF) ("the Company" or "Canadian Zinc") is pleased to announce that it has raised US$10 million by the sale to Sandstorm Metals & Energy Ltd. ("Sandstorm") of a 1.2% net smelter return royalty ("NSR") on the Prairie Creek Mine.
In addition, as part of the agreement, Sandstorm has granted Canadian Zinc the option, for a period of 30 months, to repurchase 100% of the NSR without premium or penalty for US$10 million, if Canadian Zinc enters into a metal stream agreement with Sandstorm under which Sandstorm will provide Canadian Zinc with an upfront deposit of not less than US$90 million to be used to finance part of the capital cost to develop the Prairie Creek Mine.”
So, yes, they have $10Million US to add to their already existing working capital.
- Takes any current financial pressure right off the company.
- CZN does not have to liquidate any Vat Gold shares. Can wait for share price appreciation.
- Payback through the NSR is years away.
- Have financial room for upgraded feasibility study, resource upgrade, capacity, etc.
- No dilution to us shareholders.
- Moves this project forward.
Czicf, your post;
“If they needed $10 million why didnt they just get it when the stock was 70 cents 3 months ago with a small dilution.”
Czicf, it was above .70 cents for only the first 2 days of February.
I guess you think they should have gone out in those 2 days and come up with a Private Placement.
You also wrote;
“They can still save themselves with a sale or JV, we will see”
Yes, Czicf, you correct.
That’s the point, which by your continual complaining; you seem to be missing.
This may very well be management’s plan.