Neo Lithium Corp V.NLC

Primary Symbol: NTTHF

Metals & Mining Industrial Metals & Minerals

Neo Lithium Corp is engaged in the business of exploration operations. Its principal business activities are the exploration and development of resource properties. Its project includes the 3Q project. It operates its business in the countries like Canada and Argentina, however, most of the revenue is generated from Canada.

OTCQX:NTTHF - Post by User

Neo Lithium Corp

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Comment by poneon Dec 14, 2018 12:29am

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Post# 29114232

RE:RE:RE:RE:RE:Capital Raise for Production Plant

SnowyWindows wrote: You are ignoring the $490.2M of capital expenditures already baked into the1.45M NPV.

Plus we are expecting better economics in the updated assessment.

How am I ignoring the capex? That's what the $500M+ capital raise we are modeling is financing!

To derisk the investment they need to finance their plant. In the proposed thumbsketch calculation - which might be wrong at many levels since I did not research it carefully - they are finding a partner who gives them $250M, takes 40% of the production and takes some number of shares in exchange for the financing. Some of the capex requirement is raised as debt.

I was not trying to develop a precise model. I was trying to quickly show that $2.30/share did not seem to correspond to an economic reality, given the NPV and likely amounts of dilution.

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