TSXV:CAV.H - Post by User
Comment by
mining_pays_my_billson Aug 28, 2014 8:18am
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Post# 22885278
RE:RE:RE:Q2 on SEDAR
RE:RE:RE:Q2 on SEDARI think thats exactly it- if KORES doesnt provide the financing they dont increase their share above 90. If the financing comes from a bank, the bank doesnt necessarily want a share of the project they just want their interest, thats how a bank benefits. Just like taking out a loan to reno your house- the bank doesnt own a portion of your house, they just want their money back with interest. Bank provides money, they get it back with interest, KORES gets 90 of Boleo, Baja gets 10, everyone's happy. If financing comes from maybe another partner, say a mining company, then maybe they would provide it in exchange for a stake in the project, in which case each party's ownership would be diluted accordingly I would assume. As of latest financials release, we still own 10%. I think we are undervalued even at 3% ownership, so I'm willing to accept some dilution but obviously id rather not. All my personal opinion.