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ENERGIZER RESOURCES INC T.EGZ

"Energizer Resources Inc is an exploration stage company. It is engaged in the advancement of the Molo Graphite Project, consisting of a commercially minable graphite deposit situated in the African country of Madagascar."


TSX:EGZ - Post by User

Post by riverrockon Sep 22, 2015 4:39pm
140 Views
Post# 24126367

Some thoughts

Some thoughts

It would be interesting if Madagascar would consider a 10% JV interest with ENZR, this way she would cover 10% of Molo's project costs and have a stronger interest in its development.

Then large shareholders such as JP Morgan Chase and VR Global and other large share holders – who are not ENZR board members/or employees – should surrender their shares to Energizer for the other 40% interest in a 50% JV - according to their holdings - to create a 50% JV. Such would (a) lower ENZR's share float, and (b) increase the value of all of ENZR shares. Such Treasury shares could be used to back - the bank loan - for ENZR's part of the JV and also used for future developments in Madagascar.

After such, DRA Projects could be named Molo's operator and be responsible to both the JV Partners and ENZR.

By many indications demand for quality large flake graphite will increase considerably, which could allow Molo to go into production at a higher rate than presently contemplated, as much of the indicated and measured resources can be converted to proven and probable reserves and added to the existing proven and probable reserves.

A JV could also allow for early development of the Vanadium Mine, which can operate on a lower tonnage than previously contemplated due to present lower demand for electrical grade V2O5.

Perhaps the preheat cycle can be powered by an on-site leased solar energy installation to Energizer while company holding the leasor may also supply the surrounding communities.

Contrary to reports in many articles that the use of coal fired electric will decrease, read this. https://www.mineweb.com/articles-by-type/independent-viewpoint/we-are-nowhere-near-peak-coal-use-in-india-and-china/ . Such electric power increases using coal in China and India should increase the use of VRB's.

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