RE:RE:understanding the deal: what i specifically like about this deal is that TLO has the cash for Phase1 on hand:
1 million inital option payment + 10 million in phase1 drilling requierements
Cash on hand: approx 13million
Then if you look at the other assets of TLO, a sale of them should be enough to at least cover Phase2 requierements:
2.5 million option payment + 10million phase 2 drilling
Their other assets are:
*SHARES in ASX.TOU/TSX.VBRI/Larg. Dur.... = 5-6 million Can$ (as of today)
*Boikarabelo Coal Mine Royalty (capped at 3million) so i assume a NPV of 1,5million
*1-2% NSR on several V.BRI projects (BRI marketcap 70million), i assume a 4-5million NPV
* Trairão Iron Project in Parà State, i have no idea in this depressed iron ore market, what it might be worth , but 5million should be the minimum
Bottom line: At a certain point they will raise funds, but there is no pressuring need, that could imidiatly limit the upside here
chrs
teatime