RE:RE:Leveraging the Due Diligence of a Strategic Partneryou hit the nail on the head. CGN is now the only equity financing option left to FCU and what happened to Selwyn is most likely going to be FCU's fate. The scary aspect in that scenario is that Dev could sell off PLS to CGN and squander the sales proceeds somewhere else.....but only after a lengthy period of hefty G & A.
tiger6301 wrote: Hi quakes99, Having a strategic partner can go both ways. I will be very cautious with it, especially the Chinese partner. The small investors, or the company are screwed big time by the Chinese. Two examples are ScoZinc (was called Selway) and Moly Mine. Selway sold its 50% interest for 100 millions, the JV burned the money quickly in 2 to 3 years, then Selway could not raise more money, had to sell the remaining 50% for 50 millions. It's sad story for small investors in both cases. Tiger
quakes99 wrote: This morning I attended the Sprott USA Webinar on the Project Generator model for investing in mineral exploration, and one of the key take-aways from the presentation was that, from an investor's perspective, when a major player enters into a joint partnership on a specific project they are bringing to bear all their expertise and resources to conduct due diligence on behalf of other investors in the junior explorer.
Major players in the mining industry have earth scientists and engineers on staff that have extensive expertise and experience in assessing project viability when conducting due diligence. Their signing on to a partnership or strategic investment is a clear sign that extensive due diligence has been done that supports the strength of the project, so other investors in the project are getting the benefit of that due diligence to reduce their own investment risk.
That theme plays directly into the Strategic Investment by CGN into Fission. Backed by one of the largest nuclear builders in the world, CGN Mining threw all their expertise and resources at PLS and after exhaustive due diligence decided to go ahead and purchase a 19.9% stake in the company at a huge premium to the market. Chinese investors are renowned for their intensive due diligence, so CGN's decision to make a direct investment shows that they truly believe in the value and viability of the PLS project.
Bodes well for investors in Fission, imho.
Good luck with your own due diligence.
Cheers!
PS. Sprott say that they will be putting up an archive of the Project Generator webinar in the future, so I will post that when it becomes available. An interesting presentation that provides insights into why Fission 3.0 has taken the Project Generator route.