RE:RE:RE:RE:HELMThinker,
The way the agreement is written, the term "project" could mean only the plant and not the mine. However, I don't think that's what within the agreement since it is written “by committing to pay for a portion of the mine construction costs”. So the mine it must mean, including plant and mine development.
I agree with you that JSL has avoid dilution in the past. But when you are closing on the final goal, the temptation becomes greater to get to it even if you have to concede a little bit more. We will see.
On the other hand, I disagree with you about the fact that this decision will have to come after the BFS. It is written in the agreement : “HELM 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“.
Normally, the financing should come after the BFS. But if CRE succeed in arranging the financing before the release of the BFS than Helm could profit from a lower SP. This is speculation obviously. Or is it?
If you remember what JSL said at the last AGM when asked if CRE had the money (5 M $) to complete the BFS, how long would it take to get it completed? JSL answered very clearly: 4 months. (Usually a BFS takes about 6 months to produce.) CRE got the money at the beginning of June 2016. Four months later lead us to the beginning of October 2016, not February or March 2017 (although these dates have not been released by CRE; but only released on SH as a report of a conversation with JFM, if I recall correctly). The latest dates would mean CRE will take 9 to 10 months to complete the BFS.
Why double the time for the BFS’s release? We could speculate on the reasons but this is a very good question to ask to JSL. Why postpone the BFS for so long? Reasons may be to improve the figures by including the coming drillings? Or, to get the financing done before the BFS as to provide an advantage to their partner Helm? Etc… I let you pick the good one.
To complete my information of the previous post, the 30 M $ (sorry should have been 30 M $ instead of 40 M $ in my previous post) or the 70 M $ come from the figures related to the plant’s building. The cost of the first phase of the plant is about 120 M $ (mentioned by JSL if I recall correctly). So 25% of 120 M $ is 30 M $. Or the cost of the complete plant, that is about 280 M$. So 25% of 280 M $ is 70 M $.
JMHO
PADAP23