RE:Financing takes at least 6 months Especially due diligence may take some time. SCY asks for US 150M. The potential investor will hire an independent expert team to validate:
- the CMR and HPA patents (which are the basis for the sustainable competitive advantage), and other patents deemed relevant,
- SCY’s business plan,
- CMR/HPA process designs (flowsheets)
- the LOI with Barrick,
- all the CMR + HPA cost and revenue calculations,
- the pilot test programs WD has completed,
- all market and price assumptions,
- status of the scandium LOI’s,
- the CMR-work currently done at the Phoenix mine,
- the people at SCY
- etc, etc,
They will intensely work together with GP and WD for clarification. They will also interview people involved in CMR at the Phoenix mine.
There are some open ends, hence the development programs. What are these trying to accomplish? What are the project risks involved?
They have convinced Barrick to host the CMR program, and those people at Phoenix have also done their DD. This enormously adds to SCY's credibility and promisses a positive outcome of this DD study.