RE:Finance a mine ourselves if necessary?the_Chief wrote: I see no reason why not. If you generate cash flow, you can get bank financing. If we generate enough to floar aloan...why not?
Thats why this idea is so unique. Its a "Pay as you Go" out of revenues from your own property, I think its brilliant.
I think there would be more questions asked by a banks lending unit than we have answers for at this point in the game. You have to remember that canadian banks, by their very nature are extremely risk adverse. They tend to look at every deal in it's worst possible scenario.
Example; We have an offtake agreement with a partner who will buy 100K tons a year for X dollars per ton. All well and good, can you supply 100K per year? For how many years? What are extraction costs? Transportation costs? Do we have solid projections for the market in Graphite? (Not a commodity most banks follow I think)
Now...if we get a government contract, that could change things. Government contracts come with their own inherent due diligence and that can alleviate some concerns.
Either way, I have faith Bruce and his team have a damn good idea how to make this a VERY profitable company in the not to distant future.