GREY:PGDIF - Post by User
Comment by
ekimon Sep 17, 2016 11:52am
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Post# 25248217
RE:Deal combinations and permutations
RE:Deal combinations and permutationsOn the B scenario...you have to remember that Stornoway took their financing to the extreme.
historically
1 - Sell a royalty of some sort (1 to 3%) for x Dollars.
2 - Sell a streaming agreement for the non-primary commodity (ie. Copper deposit with some gold in it...sell the gold to Franco Nevada).
Stornoway went beyond this and sold a streaming agreement not of their sub-commodity....but of their primary commodity.
So, taking that into hand and expanding your scenario...could PGD sell the southern area focus and keep a 20% streaming agreement that still sees PGD paying $25 to per carat or $45 per tonne or something similar and get the benefit of the difference between selling price of those 20% of carats and the very base cost that PGD needs to pay for them.
PGD keeps the claims outside the southern area of focus where there is still so much untapped exploration that has gone to low priority only because of limited resources and focus around CH6 and CH7.
...yet another permutation.
LONG..PGD
EKIM