Strategic Partner NR ReviewIf you take the time to read this NR in detail you will clearly understand why the market needle for CRE stock moved very little. Lets step through this conditional agreement.
1. "Strategic Partner" is unnamed hence no speculative value can be assigned. Also they do not want to commit to being named until after a FS is completed that validates "the technical feasibility and economic viability of the project." This represents uncertainty to the market as its s non financial conditional commitment with an exit.
2. "Strategic Partner has agreed to collaborate with, assist and provide technical support for the preparation and completion of the feasibility study" means no money. Therefore CRE requires $3.5million. That means dilution and PP will be required with warrants etc let's say 14Million share dilution at .25 and 1/2 warrant, but the market will determine that price. The market smells a chum event in the works. So expect price rises prior to the PP and then declines as they short stock. Standard market Pump and Dump event coming to a neighborhood near you.
3. So a PP is in the works, this takes time to sell. Once completed the average time to complete FS is anywhere from 6-12 months. Then the "Strategic Partner" has 2 months to finalize and execute the off-take agreement after completion of the FS.
4. We are not done yet, further conditions "Strategic Partner will also have the option of participating in the project by providing equity in the project financing for an interest of up to 25%.". The caveat to this participation will only occur when "Strategic Partner may exercise the Financing Option within a period of 60 days after having received written notice from Critical Elements to the effect that it has arranged financing for mine construction." Remember, it states up to 25% hence anywhere from 0-25% financial commitment to the project costs. CRE must obtain upfront financing for the mine construction costs before the "Strategic Partner" will put money into the project. So we need to find a cool $xxx million so major dilution event.
5. Finally, this "Strategic Partner" also has committed no money to this partnership yet has CRE under lock and key with following statement "Strategic Partner has also been granted a right of first refusal to become the exclusive off-taker for all Products on any of the future projects of Critical Elements (or its affiliates)."
So in a nutshell, we have a noname, nofinancial support from a "Strategic Partner" that based on the above timeline will take 1 to 1.5 years before a potential shovel hits the ground. If everything goes without a hitch a mine could be completed 3 years from today. Let the dilution events, market financialization and manipulation games really get going. Making money in the stock market is hard work.