Today's news: this is a project financing strategy!THis is my takeaway from today's news. I
Even stronger partnership between NGM and SCY. Putnam: “we have a great partner with us”.
A true vote of confidence on WD’s work – the CMR and HPA patents SCY has filed. Those patents are at the core of SCY's competitive advantage!
A joint development program (50:50 HPA deal) means that NGM is responsible for 50% of the CAPEX. This deal is also a HPA financing deal.
There’s now a clear path to production for both CMR and HPA as well. We could not have asked for more! These are untested, innovative production methods, SCY has found an extremely competent partner that goes all in.
They will start with HPA production (phase 1). In the news release: “HPA will likely become the primarily pay-metal for the (CMR) project”. Revenues from HPA will be used to pay for CMR (Phase 2). Right?
All this significantly de-risks the HPA and CMR projects; with a significantly reduced CAPEX (now only 43M = 8M + 35M, instead of 150M), it should be even more easily to finance the project!
All in all, a very clever twist to an already brilliant strategy!!!