OTCPK:CRZNF - Post by User
Comment by
bilarooon Dec 12, 2016 2:32am
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Post# 25584049
RE:Environment minister
RE:Environment ministerMy comment: neutral
Biggest reason why I think the all season road will be approved: The Govt of Canada divested powers to the Govt of NWT. Before that THEY (GoC) were on the hook for cleaning up and remediation of the Prairie Creek mine. Now that responsibility rests with the GNWT.
So, unless CZN gets road approval AND financing they can walk away and everybody including us shareholders lose.
That is apparently why there was such a scuffle over the security deposits. CZN had/has an agreement with GoC that if the mine doesn't go into production, they can walk away.
Are we out of the woods: Nope
Let's say the road gets approved. A milestone to be sure.
Who is then going to fund the project? And at what cost? Joint Venture? 50-50 split? Buyout? At what price? Or, no one?
Can the road be built? It's technically challenging and, some say impossible. The winter road is so overgrown and damaged from years of not being used that it's like starting over. Might as well build a new all season road!
For sure, if the road is not approved, no one will finance this project!
Unless and until the road is approved CZN can walk. Unless and until substantial construction of said road and mine infrastructure is done. CZN can walk.
Unless and until financing or some other deal happens, this project is doomed.
Taylor was quoted as saying back in February, that a number of mines have gone ahead with only a PFS. He said that most of the PFS is of FFS quality.
The missing component is the all season road.
Having said all that, they are contemplating doing a Full Feasibilty Study in 2017 if all the stars don't align. More stalling? Or survival?
I seriously question whether they have anyone lined up to finance if the road is approved.
If it's approved and they don't immediately announce a financing, the share price will tank.
Just like in 2013 when they got the water licence.
A dangerous precedent was set when the Mactung tungsten mine went bankrupt and the GNWT bought it for resale. During an election. Shareholders got hooped. They bought it for $4.5 million.
The company went bankrupt. Kearney won't let this happen to Prairie Creek.
Conclusion: With all the risks, with all delays, with all the red tape, and with all the hope that the people of the region have and CZN has for the future of the Prairie Creek mine, I think it's going to get done.
But.... it all depends on a continuing rebound in base metals and a rebound in SILVER.
Final Word: The currrent management might not be there when all is said and done.
Just my Saturday night special opinion.