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Ascot Resources Ltd T.AOT

Alternate Symbol(s):  AOTVF

Ascot Resources Ltd. is a development and exploration company. The Company operates through two segments: the development of the Project and exploration and evaluation of Mt. Margaret. It is focused on re-starting the past producing Premier gold mine located in British Columbia's Golden Triangle. The Silver Coin, Big Missouri, and Premier deposits, collectively known as the Premier Gold Project (PGP) are located near the processing facility on the Premier Mine site. The PGP covers about 8,133 hectares (ha). Its Red Mountain Project (RMP) is located 23 kilometers (km), southeast in an adjacent valley. RMP consists of about 47 contiguous mineral claims for a total of approximately 17,125 ha. Its Premier and Red Mountain Gold Projects supply gold and silver ores to the process plant. It also has two other properties, including Swamp Point, an aggregate project located in British Columbia and Mt. Margaret, a porphyry copper-molybdenum-gold-silver deposit located in United States.


TSX:AOT - Post by User

Bullboard Posts
Comment by dmacdon Jan 12, 2019 4:43pm
120 Views
Post# 29223711

RE:RE:Understanding

RE:RE:UnderstandingMolly, please see how Pretium financed their mine. Typically they get the valuation up based on drilling to prove resource then PEA then Environmental Permit then PFS. IDM is close to this point so its valuation should start to reflect all this progress. The PFS and Permit allow investors to assign an NPV which is discount based on risk factors. However it is at this point the junior can partner for funding or go to capital markets for equity at an increased price. IDM should be able to raise say $25M in the capital markets at about $.15/sh based on the progress in a reasonable market to fund engineering. Certainly as value is added the SP should not be 50% lower so manipulation has occured. Once the company has a solid cash position then it can negotiate off take agreements but for gold market this is not necessary given it is a common commodity. Once engineering has reached detailed point then construction capital is raised via a combo of equity markets and bank loans to reduce dilution. Each raise is at a higher price as the risk is decreased. Alphamin just went this route and upon construction nearing completion they refinanced. The partner route might be such as my Lithium Americas just did. They have up about 40% of the project at the PFS stage in exchange for cash to completion and loan agreements. That was the only dilution from PFS and Permit ... so about 50% of the project could be expected for a white knight to come on board. I have Champion Iron Ore which got funding from the province, funds and management plus capital markets. That one I hold far more. Next up is to increase production with cashflow. IDM fully developed has an NPV of $200M and Capex of $135M. Hence a raise of $25M at .15/sh followed by engineering then a raise of $50M at .25/sh then cover the remainder with debt of $75M is one option. Or give up 50% ownership for 50% construction cost coverage and loan guarantees. Dilution is a given but at most a double not the ridiculous claims your scenario entailed. Lets keep it real. If Ascot can prove the mill has significant value then they might need to raise only $50M and then secure loans. If Ascot is Sprott's end game then you may do well unless they screw you over with excessive capital raise and loads of dilutive warrants. If Sprott has a different end game then Ascot will see a walk down then the next bigger fish will secure the assets for cheap. Either way they play dirty like Wallstreet so beware of them and avoid their games or you will lose. Regards
Bullboard Posts