RE:mtx agm
Thanks Carter & Bandi to both of you for your comments.
Under the previous funding offer from Dundee of $51 million, the financing would be drawn down by way of 4 tranches or staged disbursements: The first $5 million was budgeted for prep work on the 10,000 tonnes bulk sample including hiring 40 workers and setting up bulk processing plant and construction costs for the ice road.
https://www.newswire.ca/news-releases/metalex-partners-with-dundee-to-develop-u2-kimberlite-pipe-512075941.html
Carter said
"initial costs would be $5 million to get drill and boots on the ground" which would comport with the MTX stated $5 million dollar figure required to get U2 started. Bandi, I question whether Carter had misunderstood it would cost $5 million for the whole project. Although I wasn't in attendance at the AGM, his number isn't offside.
In the last Dundee deal that fell through, Dundee could have earned up to 51% in U2 and T1 kimberlite pipes by expending $51 million. So, essentially, if MTX is to secure new finnacing now, it would likely structure the deal just as before - selling 51% of those properties to the prospective financiers or consortium. No shares dilution as it would be through monetization of U2 and T1 assets. The future U2 mine development costs would be repayable from cash flows.
What makes U2 feasible is the high probability that the Victor plant could be bought for a song, say $10 million should the mine be forced to undertake a reclamation & de-commission at ann est. cost of some $200 million in mid 2018.
If ATTA agreement is obtained, money will follow. There is still time. If not successful, another year, but the diamonds in the ground will not vaporize.
Going forward, Quebec drilling under a small lake in Wemindji where diamond indicator minerals have been traced there, and Morocco testing are very positive news.