Sage4Puck DILUTION IS NOT GOING TO BE AN ISSUEThere are 1.8 million warrants @ $2 that are callable above $2.20. This brings in $3.6 million and therefore takes care of Phase1 capital costs. I expect this will happen later this year. Perhaps soon.
Phase2 capital costs are US$ 17 million. This is just 1 year's plus 1 quarter's worth of Phase1 net cash flow which is around US$ 14 million per annum ( $24/Ton profit x 600,000 Tons ). Therefore after operating Phase1 at full capacity for about 1 year Verde can proceed to Phase2.
Phase3 costs are $350 million. But Phase2 costs drop by 50% to about $7 generating a profit of $31 per ton i.e. US$ 155 million per annum, which means that Verde would need 2.25 years of operating Phase2 to earn the capital necessary to build Phase3.
So, in theory, if all goes well, Phase3 construction could start as early as 2022 or 2023 well in time for the 2025 production start date.