RE:RE:Teck increases shareholding to 30.35% of AQMYour post only reinforces my position. AQM does not need to raise money at this point therefore there is no money to be made by the brokers in the way of fees.
With a positive PFS they will then have to proceed to a full feasibility or do some interim operational work (water supply?) before making a production decision.
When the next step is taken AQM will have to put up the 30% of the capex to maintain their share of the project.
In the Teck agreement modifyig the original option on the property Teck dropped the NSR clause.and placed a clause allowing Teck to participate in any underwriting to allow them to maintain their percentage ownership of AQM.
My reading of the PEA is that AQM would have to come up with about $400 million to maintain their project share.
The total capex for this project is a relatively small number for Mitsubishi and Teck but a major challenge for AQM. If Teck put in their 30.35% of the funds required from AQM together with the 50% that they need for the Joint venture company and Mitsubish and Teck fund the joint venture to production AQM's value would remain at 30% of a major mine Current Market cap $14 million as opposd to $400 million at 30% of Zafranal.
WhenTeck worked with other juniors in mine development they usually allowed the original management to paricipate in the project and from what I can see they structured a recent offering with some warrants (Five years at $0.10).
By having AQM raise he money in the market it will reduce the money required to be supplied by Mitsubishi and Teck.
I hope that someone takes notice and comes to the same conclusion that I have.